Penn West Petroleum Ltd. And Athabasca Oil Co
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Canadian oil companies such as Penn West Petroleum Ltd. and Athabasca Oil Co. are forced to cut staff, reduce dividends and sell their assets in order to prevent bankruptcy. The reason for these actions is because the price of oil dropped below US$50 for a barrel. Banks provided ways to raise funds for struggling oil producing companies by telling them to sell major assets.
There has been an US$85 billion loss in value for the Standard and Poor’s/TSX sub-index which makes it the worst year since 2009 for West Texas Intermediated crude’s price. After cutting 400 jobs and earning $1.5 billion by selling assets, Calgary Oil Company, Penn West still plans to sell property. They claim to remain confident with a disciplined approach on the situation.