Oklahoma Earthquake Swarms Linked To Hydraulic Fracturing Within State
An oil well fielder works at a fracking rig site near Stillwater, Oklahoma. Photograph by J Pat Carter—Getty Images

Oil and Gas Exploration Bankruptcies Could Sextuple This Year

Mar 25, 2016

Ever since the price of oil started slipping in 2014, economists have worried about bankruptcies among the nation’s highly leveraged oil and gas companies. Now, after oil's nosedive, 2016 could be the year it comes to a head. Deloitte estimates that a third of global oil and gas exploration and production companies—with a combined debt of over $150 billion—are at high risk of default or bankruptcy or default, unless something dramatic changes. The larger financial impact, and thousands of attendant job losses, could make cheap gas a lot less thrilling.


For more on the energy industry, watch this Fortune video:

A version of this article appears in the April 1, 2016 issue of Fortune with the headline "Bankruptcies Loom in the Fracking Industry."

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions