A report published by the law firm Haynes and Boone on August 1, 2016 found that 90 gas and oil producers in the United States and Canada have filed bankruptcy from January 3, 2015 to August 1, 2016. Over half of the bankruptcies have come in this year alone.
According to the report, the total debt defaulted on by the 90 companies is $66.5 billion. Some of the more notable firms listed in the report are Linn Energy, LLC; Breitburn Operating LP; Sandridge Energy, Inc.; and Atlas Resource Partners, L.P., all of which have filed for bankruptcy in the last three months, many of which were heavily recommended by financial advisors and their respective institutions.
The numerous bankruptcies are the product of oil prices’ dramatic fall from the over-$100 per barrel heaven it occupied for some time. While the prices of the commodity have always been volatile and difficult to determine, the prices have dramatically dropped.