Aug
26

Oil Industry Needs to Find Half a Trillion Dollars to Survive

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At a time when the OIL PRICEis languishing at its lowest level in six years, producers need to find half a trillion dollars to repay debt. Some might not make it.

The number of oil and gas company bonds with yields of 10 percent or more, a sign of distress, tripled in the past year, leaving 168 firms in North America, Europe and Asia holding this debt, data compiled by Bloomberg show. The ratio of net debt to earnings is the highest in two decades.

If oil stays at about $40 a barrel, the shakeout could be profound, according toKimberley Wood, a partner for oil mergers and acquisitions at Norton Rose Fulbright LLP in London…

Oil Industry Needs to Find Half a Trillion Dollars to Survive

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