• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Oil Prices

One-Third of Oil Companies Could Go Bankrupt this Year

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
February 16, 2016, 5:43 AM ET
An oil worker adjusts the wheel of a flow valve on a modern oil pumping unit at an oilfield operated by Embamunaigas, a unit of KazMunaiGas Exploration Production, in Akkystau village, near Atyrau, Kazakhstan, on Saturday, July 4, 2015. The majority Muslim country is central Asia's biggest oil producer. Photographer: Andrey Rudakov/Bloomberg
Photograph by Andrey Rudakov—Bloomberg Finance LP

About a third of the world’s publicly-traded oil companies are at high risk of going bankrupt this year, according to a new report out Tuesday.

Consulting and audit firm Deloitte put out its findings after closely examining 500 publicly-traded oil and natural gas exploration and production companies worldwide. The threat these companies face is a result of crude prices hovering near 10-year lows, which has already prompted firms to slash their budgets and staff.

The 175 or so companies most at risk have more than $150 billion in debt, according to Reuters’ report on the Deloitte study, and they’re having trouble generating cash given the decreased value of secondary stock offerings and asset sales.

Rumors of impending bankruptcies in the U.S. shale patch have become commonplace in recent weeks. Last week, Chesapeake Energy Corp. (CHK), one of the U.S.’s biggest shale gas producers, was forced to issue a statement denying it was planning to file for Chapter 11 protection, after its stock fell 50% in a day.

Moreover, while many firms were able to cushion the blow of collapsing prices last year by virtue of having sold their output forward, the forward curve in futures markets this year offers no such comfort. Brief hopes that the world’s largest producers, Russia and Saudi Arabia, would cooperate to cut output and end the glut were dashed early Tuesday after a meeting between their respective ministers ended without a binding agreement.

 

Despite its doom and gloom, the report offered a silver lining to one segment of the industry: oilfield service providers that supply the workers and equipment needed to drill wells. Because servicers have lower capital costs than producers, there have been fewer bankruptcy filings in their ranks. Only 14 of the 53 energy companies in the United States that filed for bankruptcy last quarter were service providers. Deloitte said that trend is expected to continue—at least in the short term.

 

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
Success
In 2026, many employers are ditching merit-based pay bumps in favor of ‘peanut butter raises’
By Emma BurleighFebruary 2, 2026
2 days ago
placeholder alt text
Politics
Meet the Palm Beach billionaire who paid $2 million for a private White House visit with Trump
By Tristan BoveFebruary 3, 2026
13 hours ago
placeholder alt text
Cybersecurity
Top AI leaders are begging people not to use Moltbook, a social media platform for AI agents: It’s a ‘disaster waiting to happen’
By Eva RoytburgFebruary 2, 2026
1 day ago
placeholder alt text
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisFebruary 2, 2026
1 day ago
placeholder alt text
Personal Finance
Current price of silver as of Monday, February 2, 2026
By Joseph HostetlerFebruary 2, 2026
2 days ago
placeholder alt text
Economy
'I just don't have a good feeling about this': Top economist Claudia Sahm says the economy quietly shifted and everyone's now looking at the wrong alarm
By Eleanor PringleJanuary 31, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in

Startups & VentureElon Musk
Nevada legislators blast Boring Company over safety and environmental violations as Elon Musk-owned startup declines to testify in hearing
By Jessica MathewsFebruary 3, 2026
2 hours ago
AIAmazon
Amazon AWS CEO Matt Garman pushes back against Elon Musk’s space data centers plan
By Alexei OreskovicFebruary 3, 2026
6 hours ago
Lurie stands a podium and addresses a crowd.
SuccessSuper Bowl
Levi Strauss heir Daniel Lurie helped lure the Super Bowl when Levi’s Stadium was under construction. Now he’s mayor for the $440 million windfall
By Jacqueline MunisFebruary 3, 2026
6 hours ago
Man wearing sunglasses and a collared shirt.
C-Suitechief executive officer (CEO)
New Disney CEO Josh D’Amaro stands to make $45 million, but he’ll also get something priceless—a ‘clean break’ with Bob Iger
By Amanda GerutFebruary 3, 2026
7 hours ago
C-SuiteSuccession
Bob Iger left Disney’s CEO post just before COVID exploded. Will his second exit be followed by a plot twist?
By Geoff ColvinFebruary 3, 2026
7 hours ago
An aerial view of America’s only rare earths mine
EnergyRare Earth Metal
New ‘Project Vault’ critical minerals stockpile is ‘first step of many’ needed for U.S. to break China’s supply-chain chokehold
By Jordan BlumFebruary 3, 2026
7 hours ago