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2016 calls for strong nerves from oil industry players

Analysis: The oil price war has become painful and more long-term than Opec anticipated. A change in paradigm is underway, and this could make 2016 a tumultuous year of change.

Photo: /ritzau/Jacob Ehrbahn

The warning comes from US Federal Reserve's Dallas branch: The number of halted payments in the American oil industry has now climbed to the same level noted during the worldwide recession in 2009.

"Lower prices on oil and natural gas have had significant financial consequences for US oil and gas producers. They are working with higher costs than many of their international competitors, while their vulnerability is increasing as risk coverage based on significantly higher oil prices expires. If this price development continues, the number of deferred payments must be expected to rise in 2016," writes the Federal Reserve Bank of Dallas in a brief.

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