{"id":4833,"date":"2015-01-25T08:29:10","date_gmt":"2015-01-25T13:29:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4833"},"modified":"2015-01-25T08:29:10","modified_gmt":"2015-01-25T13:29:10","slug":"oil-drillers-are-going-to-die-in-q2-conway-mackenzie-warns-expect-outright-liquidations","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4833","title":{"rendered":"“Oil Drillers Are Going To Die” In Q2, Conway Mackenzie Warns “Expect Outright Liquidations”"},"content":{"rendered":"

“Oil Drillers Are Going To Die” In Q2, Conway Mackenzie Warns “Expect Outright Liquidations”<\/a><\/h3>\n

“The second quarter is going to be devastating for the service companies,”<\/strong><\/em>\u00a0warns Conway Mackenzie – the largest U.S. restructuring firm – adding that, despite slashing thousands of jobs, delaying (or scrapping) billions in capex amid the prolonged rout in oil prices, “there are\u00a0certainly companies that are going to die.”<\/em><\/strong>\u00a0As Bloomberg reports, oil drillers will begin collapsing under the weight of lower crude prices during the second quarter and energy explorers who employ them will shortly follow with oilfield-service providers are facing a “double-whammy.”\u00a0As we noted here, there are more than a few candidates for this ‘death’ list<\/a>as it appears increasingly clear that\u00a0what was considered an “unambiguously good” narrative for the nation is anything but<\/strong>…<\/p>\n

As Bloomberg reports,<\/em><\/a><\/p>\n

\n
Companies that drill wells and manage fields on behalf of oil producers will be the first to fall<\/strong>\u00a0after the benchmark American crude, West Texas Intermediate, lost 57 percent of its value in seven months, said John T. Young, whose firm led the city of Detroit through its 2013 bankruptcy.<\/div>\n

Oil companies have slashed thousands of jobs, delayed billions of dollars in projects and dropped or scaled back expansion plans in response to the prolonged rout in crude prices.\u00a0For oilfield service providers that test wells and line the holes with steel and cement, the impact of price reductions forced upon them by explorers will start to pinch hard during the second quarter,\u00a0<\/strong>Young said Thursday.<\/p>\n

\u201cThe second quarter is going to be devastating for the service companies,\u201d<\/strong>\u00a0Young said in a telephone interview from Houston. \u201cThere are certainly companies that are going to die.\u201d<\/p>\n

Oilfield-service providers are facing a \u201cdouble-whammy,\u201d<\/strong>\u00a0he said. Even as oil companies are demanding 20 percent to 30 percent price reductions, they\u2019re also extending wait times before paying their bills, enlarging cash-flow gaps for the drilling and equipment firms, he said.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

“Oil Drillers Are Going To Die” In Q2, Conway Mackenzie Warns “Expect Outright Liquidations” “The second quarter is going to be devastating for the service companies,”\u00a0warns Conway Mackenzie – the largest U.S. restructuring firm – adding that, despite slashing thousands of jobs, delaying (or scrapping) billions in capex amid the prolonged rout in oil prices, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[1361,2884,2489,2883,1775],"class_list":["post-4833","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-bankruptcy","tag-liquidation","tag-oil-companies","tag-oil-drillers","tag-oil-price-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4833"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4833\/revisions"}],"predecessor-version":[{"id":4834,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4833\/revisions\/4834"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}