A report by law firm Haynes and Boone yesterday revealed that another 16 U.S. energy firms filed for protection from creditors last month, reflecting crude oil prices below levels that are profitable for many companies, Reuters reported. More than 50 oil and gas firms have filed for bankruptcy since oil prices crashed in March, led by exploration and production companies with 29 filings. The amount of debt held by these companies, $49.69 billion, is nearly twice the debt held by energy bankruptcy filers all of last year, the law firm’s data showed. Oil prices have fallen by about a third from above $60 a barrel at the start of the year as the COVID-19 pandemic crushed fuel demand. They briefly turned negative in April.
