Oilfield companies dismiss workers, brace for bankruptcies
Monday, April 13, 2020
Decreased demand and crashing prices have forced more oilfield companies to dismiss workers this week, as many brace for potential bankruptcy, according to Reuters.
Even before crude prices plunged to near two-decade lows last month, many firms were operating on thin margins. These firms now face a lack of demand and customers pushing for deep price cuts to make matters worse.
Already this year, eight oilfield providers, with a total of $10.9 billion in debt, have filed for bankruptcy. That total includes three since prices fell to $20 a barrel in early March.
Learn more: Reuters > Oilfield companies cut jobs, brace for bankruptcies
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.