About a third of the world’s publicly-traded oil companies are at high risk of going bankrupt this year, according to a new report out Tuesday.
The 175 or so companies most at risk have more than $150 billion in debt, according to Reuters’ report on the Deloitte study, and they’re having trouble generating cash given the decreased value of secondary stock offerings and asset sales.
New York Times:
Paragon Offshore, which operates offshore drilling rigs from the Gulf of Mexico to the North Sea, filed for Chapter 11 bankruptcy protection Sunday evening, the latest filing in a painful shakeout buffeting the oil industry.
Over the last 16 months, about 60 oil and gas companies have filed for bankruptcy as commodity prices slide, and that figure is expected to double in the coming months if prices remain low.