Two US energy companies , Sabine Oil & Gas and Quicksilver Resources , are trying to use Chapter 11 bankruptcy protection to negotiate long - term contracts with the pipeline operators that gather and transport 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 US oil and gas producers this year will also affect the $ 500bn pipeline sector . Though pipeline operators have ensured the contracts are secure , if these two producers decide to tear up or renegotiate their deals , others will follow , which would add a new element of risk to the oil and gas industry . Fort Worth, Texas-based Quicksilver’s request to shed a contract with another midstream operator, Crestwood Equity Partners (CEQP.N), is set for Feb. 26. As oil production 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 negotiate long - term contracts with the pipeline operators that gather and transport 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 US oil and gas producers this year will also affect the $ 500bn pipeline sector . Though pipeline operators have ensured the contracts are secure , if these two producers decide 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 production shrinks and gas production stalls , many cash - strapped producers are trying to rid themselves of pricey agreements .