Many have started to introduce severe cutbacks, with some going through bankruptcy, selling out or simply going out of business before the crude market reaches equilibrium. In March, Quicksilver Resources (OTC: KWKAQ), a billion-dollar shale operation filed for the Chapter 11 bankruptcy protection after missing a bond disbursement. Emerald Oil (OTC: EOXLQ), BPZ Resources (OTC: BPZRQ) and Dune Energy (OTC: DUNRQ) also closed their operations in that month, and were subsequently followed by Sabine Oil and Gas (OTC: SOGCQ) and American Eagle Energy (OTC: AMZGQ).
The operating oil rig count is in freefall too. In the week of March 11, 2016, the count in the US was at about 430 — the lowest point since Baker Hughes started counting rigs in 1949. Layoffs are expected to continue, and the industry overall will not return to its 2014 employment peak even when prices rebound. #MergentInc #industryreports #oilandgas