Even though US shale drillers have filed for bankruptcy, their wells keep producing
Monday, April 4, 2016
Since early last year, more than 50 U.S. shale companies have filed for bankruptcy. Reuters reports that the bankruptcies aren’t affecting domestic oil output much, though.
Texas-based Magnum Hunter Resources, for instance, filed for Chapter 11 bankruptcy protection in December but is still producing from almost all of its 3,000 wells. That’s because as long as it is economically viable to continue production, lenders will let companies produce.
According to the source, well operating costs are between $17 and $23 per barrel of oil, so as long as the price per barrel is above $20, companies can keep producing.
Read more: Reuters > As U.S. shale drillers suffer, even the bankrupt keep pumping oil
Related:
- As crude oil prices fall, more US companies may face bankruptcy Jan. 15, 2016
- More US energy companies could be at risk of bankruptcy Feb. 26, 2016
- Chesapeake has no intention to pursue bankruptcy Feb. 8, 2016
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