Oil and natural gas market conditions heading into September are not trending in an optimistic direction for the U.S. industry, with the continued presence of Covid-19 cases casting a pall over energy demand, according to Haynes and Boone LLP.

Oil patch bankruptcy

In an updated Oil Patch Bankruptcy Monitor report published Monday, the Dallas-based law firm said the pandemic continues to contribute to a “collective gloom” that prices and industry activity will not turn the corner anytime soon. 

Furthermore, without any near-term hope for improving economic conditions for U.S. exploration and production (E&P) companies, it is reasonable to expect that a “substantial” number would continue to seek protection from creditors before this year is over.

Haynes and Boone has monitored North...