Could oil and gas bankruptcies increase as weather heats up?
Tuesday, April 21, 2020
As if COVID-19 lockdown measures hadn’t impacted gas prices enough, decreased demand for heating as the weather changes is really putting the pressure on producers, according to Shale Ohio.
With prices not far from the 25-year lows they hit March 23, many companies have alluded bankruptcy through drastic budget changes. However, they can’t hold on forever in the current market.
Analysts expect bankruptcies to gain momentum in the second quarter as reduced oil demand and low available storage capacity force some drillers to shut in production.
Learn more: Shale Ohio > One-two punch of warm weather, COVID-19 may lead to shale bankruptcies
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