two US energy companies, Sabine Oil & Gas and Quicksilver Resources , are trying to use Chapter 11 bankruptcy protection to shed long-term contracts with the pipeline operators that gather and process shale gas prior to delivery to consumer markets; executives and lawyers predict the outcome of these legal disputes could decide whether the unprecedented wave of bankruptcies expected to hit the Houston oil and gas producers recent days will also harm the $500bn pipeline sector. Additional reporting by Joshua Schneyer; Editing by Jonathan Leff Though pipeline operators have argued the contracts are secure, if these Two producers manage to tear up or renegotiate their deals, others will follow, which would add a new element of risk to the oil and gas industry. As oil output shrinks and gas production stalls, many cash-strapped producers are trying to rid themselves of pricey agreements.
two US energy companies, Sabine Oil & Gas and Quicksilver Resources , are trying to use Chapter 11 bankruptcy protection to shed long-term contracts with the pipeline operators that gather and process shale gas prior to delivery to consumer markets; executives and lawyers predict the outcome of these legal disputes could decide whether the unprecedented wave of bankruptcies expected to hit the Houston oil and gas producers recent days will also harm the $500bn pipeline sector. Though pipeline operators have argued the contracts are secure, if these Two producers manage to tear up or renegotiate their deals, others will follow, which would add a new element of risk to the oil and gas industry. As oil output shrinks and gas production stalls, many cash-strapped producers are trying to rid themselves of pricey agreements.