Oil price war could lead to massive wave of bankruptcies in oilfield services, Rystad says

The total capital and operational expenditure of exploration and production companies (E&Ps) is now likely to be cut by $100 billion in 2020 and another $150 billion in 2021 if oil prices remain at a $30 level, a Rystad Energy impact analysis revealed – a development that will heavily impact service company revenues, driving some out of the market.

Russia’s decision to walk away from the suggested OPEC+ deal is sending shivers down the spine of the service industry, which had already been troubled by the new coronavirus, Rystad said on Tuesday. After Saudi Arabia started to flood the market, oil prices were sent down to $31 per barrel of Brent and are currently trading below $35 per barrel.

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