As the oil and gas sector emerges from a tumultuous first half of 2020, an energy consultancy group warns the worst could be far from over for E&P companies.

Despite already surviving a global oil price war, COVID economic shock and crude’s first trade below zero, Rystad Energy forecasts an exponential increase in the number of North American E&P bankruptcy filings by year-end 2022.

“While an improvement in oil prices towards $40 per barrel WTI saved a significant number of E&Ps and prevented early Chapter 11 filings in June-July,” said Artem Abramov, Rystad Energy’s head of shale research, “the current price environment is in no way sufficient for a large number of E&Ps in the medium-term.”

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