Fewer oil and gas companies filed for bankruptcy in the second quarter as crude demand increased and prices climbed to past $70 a barrel last month, the Houston Chronicle reported. Four exploration and production companies and eight oil-field service companies in North America filed for chapter 11 protection from April to June, according to Haynes and Boone, a Dallas-based law firm tracking bankruptcies in the industry. That’s down from 13 companies in the first quarter and 23 in the fourth quarter of 2020. Of the 12 bankruptcies in the second quarter, seven were filed in Texas courts. Companies that filed for bankruptcy protection last quarter include OFS International, Dorchester Resources and Anglo-Dutch Energy. Oil and gas companies have been hit hard by the coronavirus pandemic, which slashed global demand for crude products such as gasoline and jet fuel. Unlike past downturns, oil and gas companies have been under increased financial pressure after many investors pulled out of the sector in 2018 following years of low-to-middling performance. Several energy companies said they were forced to file for bankruptcy after lenders pulled credit lines as revenue dried up. Forty-six exploration and production companies and 61 oil-field service companies declared bankruptcy in 2020, according to Haynes and Boone. The 107 oil and gas bankruptcies last year were the most since 142 during the previous oil bust in 2014-16.
