Many US producers borrowed heavily and cheaply to cash in on the shale boom,but prices of around $30 a barrel are now causing severe difficultiesLow oil and gas prices are close to triggering a wave of bankruptcies and debt defaults among US producers, investors scare. The topple in the oil price to levels that are punishingly low for producers is putting up to $88bn of borrowings potentially at risk.
About 30% of the oil and gas industry’s debt is now said to be at distressed levels – meaning companies are experiencing financial or operational problems severe enough to put them at risk of default or bankruptcy.
Continue reading...
Source: theguardian.com