Bankruptcies within North American oil and gas industry slow in October
Thursday, November 19, 2020
The North American oil and gas industry saw fewer bankruptcies in October with only three, according to the latest monthly Oil Patch Bankruptcy Monitor report published Tuesday by Haynes and Boone LLP.
However, despite seeing a slowdown, the industry hit an unwelcome milestone in October, recording its 250th bankruptcy filing since Thanksgiving 2014. Furthermore, more filings are expected before the end of the year, according to Natural Gas Intelligence.
Notable exploration and production companies that have filed for bankruptcy this year include Whiting Petroleum Corp., Chesapeake Energy Corp., California Resources Corp., Chaparral Energy Inc., Oasis Petroleum Inc. and most recently Gulfport Energy Corp. The first nine months of this year saw 40 bankruptcy filings by producers, versus 33 in the same period last year.
Learn more: Natural Gas Intelligence > North American E&P, OFS Bankruptcies Slow in October, but More Expected
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.