Shale oil extraction company in US goes bust due to oil price fall
A first U.S. shale oil and gas company WBH Energy, a private Texas-based drilling group, has filed for bankruptcy on the backdrop of the sharp decline in world prices for oil.
An application for Chapter 11 protections under the U.S. law on bankruptcy was filed this week, according to Russian information agency RIA Novosti.
WBH Energy estimates its debt at $50 million as a result of the collapse in crude oil prices over recent months, television channel NHK has reported.
The case of WBH Energy reinforces fears that falling oil prices could force more companies to leave this business.
As UNIAN reported earlier, many analysts believe that by refusing to cut oil output the OPEC oil cartel is deliberately trying to put an end to the shale oil and gas boom in United States.