December 6, 2022

Volume XII, Number 340

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December 05, 2022

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Oil and Gas Bankruptcies Rising

Headlines lately are shedding light on a frightening trend – oil and gas bankruptcies are on the rise:

According to Haynes and Boone, LLP’s August 2019 Oil Patch Bankruptcy Monitor, there has been an increase in the number of oil and gas bankruptcy filings, especially since May of 2019 – 26 exploration and production (E&P) firms have reportedly filed for bankruptcy through mid-August this year, with debts reportedly totaling $10.96 billion.

A number of factors are contributing to the increase in oil and gas bankruptcies – oil price is chief among them.  Further, according to the Oil & Gas 360 article, one of the reasons behind the bankruptcies is, “a displeased Wall Street cutting off the access to capital for most companies.”  

Many are waiting with bated breath to receive updated data on the number of bankruptcies – as of the date of the August Oil Patch Bankruptcy Monitor, there had already been 4 bankruptcies in the month of August, according to the report’s 2019 bankruptcy list.

While not an issue isolated to the Rocky Mountain region but impacting all producing states, many in Colorado are concerned that the recent legislation in the state may become yet another contributing factor to increasing bankruptcies in the energy sector.

Will oil and gas bankruptcies continue to rise for the rest of the third and fourth quarter?  Will Colorado be next to see a wave of bankruptcies?  Only time will tell…

© Steptoe & Johnson PLLC. All Rights Reserved.National Law Review, Volume IX, Number 268
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About this Author

Steptoe & Johnson’s Environmental and Regulatory attorneys represent clients before federal, state, and local courts and administrative boards in civil, criminal, and administrative matters.

Our environmental lawyers possess extensive experience as seasoned litigators who can handle commercial and energy-related litigation in high-profile cases.

Environmental and Regulatory Practice Group attorneys possess the knowledge and experience to understand the highly technical nature of environmental issues.

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