Lonestar Resources has become the latest in a line of shale oil producers filing for Chapter 11 bankruptcy as oil prices remain well below what shale oil needs to stay afloat. This week Oasis Petroleum also filed for Chapter 11, adding to the pile of dozens of others so far this year. Others included Rosehill Resources, California Resources and Chesapeake Energy.
While the shale oil producers bankruptcies of 2016 still are greater, 13 companies alone filed for protection in just July and August, most in the Southern District of Texas, where Lonestar Resources also filed.
Low consumer confidence is keeping oil prices low as people drive less, fly less and buy more things online. Oil futures analyst Sharon Breneke says, “only when consumer confidence returns will we see a recovery in oil prices.”
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