US indies batten down the hatches
The sector is largely relying on balance sheet resilience to outlast the downturn. But without an imminent oil price recovery the threat of bankruptcy looms large
Oil market pundits have been prophets of doom even since first unconstrained supply and then coronavirus-related global demand destruction cratered prices. The collapse of Whiting Petroleum into bankruptcy was seen as ominous, even before negative WTI prices at the end of April significantly increased gloominess. Company results for the first quarter are now gradually trickling in, showcasing the extent of the financial damage and preparing investors for the remainder of a gruelling operating year. Almost uniformly, firms have taken similar measures to protect their balance sheets. Hedging strategies are delaying heavy financial losses and producers have cut capex budgets to the minimum. Pr
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields