Almost anything that could go wrong in 2020 did go wrong. The year started with the Russian/Saudi oil price war and then the COVID-19 pandemic hit the U.S. and the rest of the world, which caused dramatic drops in crude demand and extreme price volatility. As a result, the confluence of these events led to an unprecedented wave of bankruptcies and restructurings throughout the upstream oil and gas industry.

As more companies contemplate bankruptcy or restructuring arrangements, could the time be right for onshore drilling rigs and assets to be snagged at bargain prices? With a known capital outlay, plus other ancillary costs and limited downside, what players are willing to acquire these assets and not leave them as paperweights? The risk-takers? The risk-averse? Oil and gas producers themselves?

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Source: JD Supra