Rising Oil Prices May Mean More Bankruptcies

17 July 2017 Publication

Oil & Gas Financial Journal

The slowly rising price of oil is a welcome change to an industry that experienced its most recent catastrophic price collapse in 2014. Production has resumed and ramped up both onshore and offshore. The trip through the price trough, however, has resulted in likely permanent changes to the industry.

Onshore production has increased at a faster rate than offshore, generally because it is less capital-intensive. Thus, onshore production once again becomes profitable at a lower commodity price point. In contrast, offshore production is a capital-intensive enterprise due to the logistical hurdles of moving equipment and labor several miles offshore in order to pull oil and gas from the ocean floor and bring it to market.

While offshore production remains expensive and logistically complicated, it has become significantly more efficient in recent years. Some of the efficiencies are the result of technological advances, while other efficiencies are the result of intense competitive pressure on service providers to lower the prices charged for their services.

Read more.

Related Services


Foley Manufacturing Update
18 August 2022
Manufacturing Industry Advisor
Using Upfront IP Licensing to Reduce Future Supply Chain Disruptions
18 August 2022
Manufacturing Industry Advisor
Do you have adequate Ransomware Cyber Insurance Coverage?
18 August 2022
Internet, IT & e-Discovery Blog
Warning to All U.S. Taxpayers Who Use Cryptocurrency: “Crypto” Doesn’t Mean Your Currency is Secret — or Protected — from the IRS
17 August 2022
Legal News: Government Enforcement Defense & Investigations
Foley Sponsors Ernst & Young Entrepreneur of the Year® Program
1 December 2021 - 30 November 2022
Michigan and Northwest Ohio Region
Moss Adams 2022 Health Care Conference
3-4 November 2022
Las Vegas, NV
An Update on Remote Patient Monitoring Policy and Reimbursement
28 October 2022
Austin, TX
AI in Healthcare: EU-U.S. Legal Challenges and Guidance and Security Implications
26 October 2022
Las Vegas, NV