Whiting collapse is shape of things to come
The Denver-based shale company’s bankruptcy notice is likely to be the first of many among US producers
The collapse of the Opec+ agreement and the demand destruction caused by the Covid-19 pandemic looks set to push many US oil and gas producers over the edge in the coming weeks and months. Benchmark WTI crude was trading c.$20/bl in early April, below production costs at most US shale wells. As a result, the industry is likely to be hit by a wave of bankruptcies. Denver-based Whiting Petroleum has been the first to go under, filing for Chapter 11 bankruptcy on 1 April, just days after drawing down $650mn from its credit facility. The company announced on 16 March that it was slashing capex for 2020 by 30pc, with spending falling from $585-620mn as planned in February’s budget to a revised $4
Also in this section
18 November 2024
The company is on track to boost import terminal capacity by 40% in three years, CEO Akshay Kumar Singh tells Petroleum Economist
15 November 2024
With Chevron and AIM-listed Challenger Energy having completed their Uruguayan farm-out deal, Challenger CEO Eytan Uliel updates Petroleum Economist on the firm's progress in the frontier basin
14 November 2024
The country is seeking to secure its position as a major global refiner and meet rising domestic requirements
13 November 2024
IOCs are focused on the next wave of exploration activity in Namibia and are keen to learn from one another’s results
