America’s once-booming oil drilling industry will be put to the test in 2015, after U.S. crude oil prices dropped more than 53 percent over the last six months.
Oil drilling firms will begin to collapse in the second quarter, predicted Conway Mackenzie Inc. the nation’s biggest restructuring advisory firm.
“The second quarter is going to be devastating for the [oil] service companies,” Conway MacKenzie Senior Managing Director John T. Young said in an interview with Bloomberg News on Jan. 22. “There are certainly companies that are going to die.”
Oil exploration companies—which employ drillers and service companies—have already delayed projects and scale down the ambition of future exploration projects.
