Shale Boom Belies Oil Patch Pain Amid Series of Bankruptcies
- Energy is sector with second-most bankruptcies this year
- Oil servicer Weatherford would be biggest casualty in 4 years
Photographer: Brittany Sowacke/Bloomberg
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Three years on from a slump in the oil market, prices are back up again and the U.S. has become the world’s largest producer. Yet the pain continues for some companies.
The boom in American shale output risks masking ongoing woes at a number of lower-tier explorers, as well as some oilfield servicers. Energy-related bankruptcies this year are trailing only those in the discretionary consumer goods sector, according to Bloomberg data. And some companies are warning of more stress ahead.