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Data: Federal Reserve Bank of Kansas City; Chart: Axios Visuals

Oil patch bankruptcies are piling up and prices are still in the financial danger zone for a significant amount of producers despite some recovery, per a Kansas City Fed survey.

Why it matters: The finding from the bank — whose region includes the producing states of Oklahoma, Wyoming and Colorado — underscores the sector's peril.

  • The Kansas City Fed report came on the heels of the latest tally of industry insolvencies from the law firm Haynes and Boone.
  • They found that 18 producers filed for bankruptcy in the second quarter, up from five the prior quarter and the most since Q2 of 2016, when companies were reeling from the last bust.

Driving the news: The Kansas City Fed survey, released Friday, finds ...

  • "Over two-thirds of firms reported they could survive more than a year if current revenues were to continue, while around 32% would not survive a year if current revenue levels persist."
  • "A majority of firms in our survey applied for and received SBA PPP loans, but low energy prices have hurt profitability."

What's next: More Chapter 11 filings. Prices for WTI, the U.S. benchmark, have been hanging around the $40-per-barrel range for the last month, far higher than the depths of April's collapse but ... they are still a problem.

  • It's "not a sufficient clearing price for many heavily leveraged shale producers," Haynes and Boone note in the report.
  • "It is reasonable to expect that a substantial number of producers will continue to seek protection from creditors in bankruptcy even if oil prices recover over the next few months."

Go deeper

Ben Geman, author of Generate
Oct 19, 2020 - Energy & Environment

ConocoPhillips nabs Concho in $10B shale mega-deal

Illustration: Sarah Grillo/Axios

ConocoPhillips is buying Concho Resources in a $9.7 billion all-stock deal that provides a stark sign of how the pandemic is prompting new consolidation, they announced Monday.

Why it matters: It's the largest deal yet in the U.S. oil patch since the COVID-19 crisis, which has sharply cut demand and sent prices downward.

Woman who allegedly stole laptop from Pelosi's office to sell to Russia is arrested

Photo: FBI

A woman accused of breaching the Capitol and planning to sell to Russia a laptop or hard drive she allegedly stole from Speaker Nancy Pelosi's office was arrested in Pennsylvania's Middle District Monday, the Department of Justice said.

Driving the news: Riley June Williams, 22, is charged with illegally entering the Capitol as well as violent entry and disorderly conduct. She has not been charged over the laptop allegation and the case remains under investigation, per the DOJ.

Biden will reverse Trump's attempt to lift COVID-related travel restrictions

Photo: Tasos Katopodis via Getty

The incoming Biden administration will reverse President Trump's last-minute order to lift COVID-19 related travel restrictions, Jen Psaki, the incoming White House press secretary, tweeted.

Why it matters: President Trump ordered entry bans lifted for travelers from the U.K., Ireland, Brazil and much of Europe to go into effect Jan. 26, but the Biden administration will "strengthen public health measures around international travel in order to further mitigate the spread of COVID-19," Jen Psaki said. Biden will be inaugurated on Wednesday, Jan. 20 and Trump will no longer be president by the time the order is set to go into effect.