The industry prepares for sub-$60 oil for the long term.
No production decline: A drop in price has typically been followed by a drop in production. In the most recent environment, however, OPEC and non-OPEC producers increased or maintained production.
The long view: Current futures prices suggest the market expects prices will improve but remain below $60 over the intermediate term. U.S. Energy Information Administration models see increases above that.
Digging in: With prices expected fall in the $50 and $60 range for at least the next year, firms have been trimming their capital expenditures and reducing work forces while accumulating cash. Debt levels for some energy firms* are at all-time highs, forcing some to sell income-generating assets.
Defaults up: Among the roughly 3,200 debt securities offered by oil-related companies since 2009, 232 (6.8%) have defaulted. Most of the defaults -- 58% -- occurred in 2016. The sector was only 2% of corporate bonds issues since 2009, but saw the highest default rate.
*Financial data is a sample of 16 large oil and gas firms by market cap. Market prices of Brent crude used throughout for analysis. Sources: Bloomberg LP, U.S. Energy Information Administration
Compiled and designed by Charles McGrath and Gregg A. Runburg