Oil and Gas Assets

Summary

This practice note discusses the economic and political forces impacting domestic oil and gas prices and production and how such assets are dealt with, when there exists financial distress, under the U.S. bankruptcy laws. The price of crude oil, like the price of virtually all commodities, moves up when supplies are "tight" and down in times of excess capacity. When a mismatch exists between supply and demand, the markets are expected to self-correct. Excess supply should result in price and production cuts, while excess demand should be met with price and production increases.