U.S. Fracking Services Pioneer Files For Bankruptcy

The low oil prices and drastically reduced fracking activity in North America claimed another victim as oilfield services provider BJ Services filed on Monday for Chapter 11 bankruptcy protection. Texas-based BJ Services, a provider of hydraulic fracturing and cementing services, operates in every major basin in the U.S. and Canada, but it is feeling the sting from the uncertainty on the commodity markets and the significantly reduced demand due to the COVID-19 pandemic. “Despite maintaining a leading market position and strong client support, the severe downturn in activity and subsequent lack of liquidity resulted in an unmanageable capital structure. After exhausting every possible alternative to address these issues and improve our liquidity, we have made the very difficult decision to proceed with a Chapter 11 process,” Warren Zemlak, President and CEO of BJ Services, said in a statement. As part of the Chapter 11 process, BJ Services plans to sell its assets, and is in active discussions with bidders regarding both its cementing business and portions of its fracturing business...MORE