More US energy companies could be at risk of bankruptcy
Friday, February 26, 2016
As many as a third of oil and gas producers are at risk of bankruptcy this year, according to Deloitte, as reported by Reuters.
The source says that Sabine Oil & Gas and Quicksilver Resources are two U.S. energy producers seeking Chapter 11 bankruptcy protection. Both companies are attempting to terminate pipeline contracts.
There haven’t been a lot of bankruptcies filed so far during the industry downturn, but most of those that have filed have been small firms.
Read more: Reuters > As U.S. shale sinks, pipeline fight sends woes downstream
Related:
As crude oil prices fall, more US companies may face bankruptcy Jan. 15, 2016
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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.