The energy service and equipment sector has been under duress for much of the past two years. Crude oil prices have declined nearly 60% from highs reached in mid-2014, driven by persistent supply from U.S. onshore and OPEC producers. Natural gas production also remains stubbornly high with substantial levels in storage. As a result, capital spending in the U.S. exploration and production (E&P) sector declined 35% in 2015 and is expected to decline another 51% in 2016. More than 80 E&P companies and 90 energy service and equipment companies have filed for bankruptcy protection in the U.S. since the beginning of 2015.
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