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The Troubled Energy and Production (Oil and Gas) Sector

The oil and gas exploration sector in North America has been crushed by high debt, globally low oil prices and regional overcapacity. The result: Over 100 oil and gas exploration and production companies have filed for bankruptcy over the past 18 months, and dozens more are expected to follow.

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The oil and gas exploration sector in North America has been crushed by high debt, globally low oil prices and regional overcapacity. The result: Over 100 oil and gas exploration and production companies have filed for bankruptcy over the past 18 months, and dozens more are expected to follow. The stress on the producers is threatening a secondary wave of bankruptcies among the downstream counterparties to the producers ‘ in particular, the so-called “midstream” entities that move the oil and gas produced into the broader system and are tied to the producers through gathering and similar agreements.

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