U.S. E&P Bankruptcies Offsetting Lower 48 Growth, with Big Losses Forecast in Oil Output

The voluntary bankruptcies by U.S. exploration operators have continued to mount, with Lower 48 oil production by the insolvent companies set to decrease from current volumes by around 25%, or 200,000 b/d, at the end of 2021, according to a Rystad Energy analysis.

“Operated oil production from the recent Chapter 11 filings is heavily weighted in the Eagle Ford and Bakken regions, at almost 400,000 b/d,” analysts said. 

Although it’s much bigger, Permian Basin-focused exploration and production (E&P) companies now going through restructuring only produce around 80,000 b/d total, the review found.

An estimated 800,000 b/d of oil production is operated by Lower 48 E&Ps that filed for bankruptcy protection in 2019 and in 2020. With limited capital spending and completion...