Bankruptcy looms over U.S. energy industry, from oil fields to pipelines

Bankruptcy looms over U.S. energy industry, from oil fields to pipelines

NEW YORK (Reuters) - U.S. shale producers, refiners and pipeline companies are scrambling for cash and face likely restructuring as they struggle under heavy debt loads while engulfed in the worst crisis the oil industry has faced.. Oil prices have crashed 75% this year, and on Monday, closed at about minus-$38 per barrel.. More shale producers are expected to seek bankruptcy protection in coming weeks, industry and banking sources say, following Whiting Petroleum ( WLL.N ), which announced such steps earlier this month.. Some oil trading merchants, who are responsible for a large part of the global crude trade, have stopped paying in advance for oil and fuels to companies with low credit ratings because they're concerned about getting that cash back, according to two credit managers at two commodities merchants.. A number of the midstream operators borrowed heavily to finance pipeline systems, built to support producers developing new, costlier shale plays when oil prices were higher, but are no longer profitable.. The sale "solves some short-term problems for them," said one person familiar with the transaction, but cautioned that this alone will not stabilize the company unless fuel demand begins to recover.. Demand is down by roughly