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
10 January 2025
New Petroleum Economist OPEC+ oil survey sees group improve compliance to ensure oil market stability going into 2025
10 January 2025
The region accounts for the biggest share in terms of capital investment in the $2t market
10 January 2025
The importance of the oil and gas sector to the UK and the value of its assets mean 2025 could offer new opportunities and a recovery in activity
9 January 2025
The disconnect between export terminals coming online and vessels being available to transport cargoes means shipping rates are not looking so good, at least in the short term
