Argumenti e Facti: The Bubble Rock Burst: Mass Bankruptcy in the American Oil Industry

Under the above headline, Elena Trigovova, in “Argentominat e Facti”, wrote about the direction of matters in the United States towards the collapse of the shale oil industry.

The article said: The American oil company Chesapeake Energy did not stand up to the drop in crude prices, so it resorted to Chapter 11 of the US bankruptcy law.

According to the New York Times, the drop in oil prices has forced 12 oil and gas companies to resort to Chapter 11 of the bankruptcy law.

According to consulting firm Rystard Energy, the number of horizontal drilling rigs in the United States is falling faster than ever before. 

In March, 624 towers worked in the country, of which only 270 remained in May.

In this regard, independent industrial expert Leonid Khazanov said: “It does not exclude a new bankruptcy among American companies that produce shale oil, and it is unlikely that the global increase in black gold prices will help them. 

This “paradox” is due to the surplus oil on the world market and the heavy debt burden on American producers, which can only exacerbate their financial situation.

 Banks do not tend to give them new loans, so the possibilities for restructuring their debts are very limited. 

Therefore, before the end of this year, the American oil industry may lose about a hundred shale oil products.

For American companies, the threshold for profitability of shale oil production is very high. 

They are, according to expert estimates, no less than the average price of $ 60 a barrel.

Khazanov added: “There is a weak possibility that shale oil production in the United States will return to its previous level after the recovery in global carbohydrate prices. 

There is a resident fear, since the collapse of prices in the spring, which is reflected in almost all American business, whether industrial or banking.