Overview
Timothy Walsh assessed the effect of falling oil prices on oil-and-gas explorers and developers that have borrowed heavily. Their “decrease in revenue and profit margins, which we are seeing because crude oil prices have dropped significantly,” is “leaving many oil and gas companies short on cash,” Mr. Walsh said, adding that “we are going to see a lot of smaller industry players face uphill battles as they try to deal with falling prices. They will look to diversify and spread their risk around as well.” However, he continued, “The lack of a sustainable finance source is partially what is driving the troubles in the industry.”