Oil Companies Warn Kansas City Fed of Widespread Insolvencies

Almost 40% of oil and natural gas producers face insolvency within the year if crude prices remain near $30 a barrel, according to a new survey by the Federal Reserve Bank of Kansas City.

Energy companies surveyed during the second half of March said they expect just 61% of firms to remain solvent this year if West Texas Intermediate crude stays at $30. That edges up to a 64% survival rate if prices rise to $40 a barrel, according to a report released Tuesday.

“Expectations for future activity also fell to their lowest level since late 2014, as most firms ...