Financial Liquidity Risk Management for Energy Industry Market Participants
© Copyright 2025, CCRO. All rights reserved. 5
Date Event Description Impacts Drivers
2011 Fukushima
Nuclear Disaster
The Fukushima disaster in Japan
caused energy prices to spike,
leading to unexpected margin calls
for utilities and energy firms
affected by the nuclear shutdowns
and subsequent market
uncertainties.
Energy price spikes, reduced
nuclear energy generation,
increased natural gas demand,
and global shifts in energy policy
toward renewables.
Weather risk
scenario
2014-
2016
Oil Price Crash
(Shale Boom)
The 2014-2016 oil price crash led to
a drop of over 70% in crude prices,
pushing companies like Chesapeake
Energy and Whiting Petroleum into
bankruptcy due to unexpected
margin calls related to high debt
loads and collapsing revenues.
Widespread bankruptcies in the
shale sector, massive job losses,
collapsing revenues for oil
producers, and severe financial
distress for energy firms.
Market price
risk
2015 Bankruptcies in
U.S. Energy Firms
A surge of bankruptcies among U.S.
energy companies, such as Linn
Energy, was driven by unexpected
margin calls as oil prices fell and
credit markets tightened, forcing
firms to default.
Bankruptcies in energy firms,
tightening of credit markets for
energy firms, and declining oil
prices.
Market price
risk
2016
Liquefied Natural
Gas (LNG) Market
Glut
An oversupply of LNG caused prices
to fall, creating liquidity issues for
major exporters like Qatar and the
U.S. This was marked by unexpected
margin calls as companies faced
financial distress due to a lack of
infrastructure to support the glut.
Financial distress for LNG
exporters, price declines in the
LNG market, and
underinvestment in LNG
infrastructure.
Market price
risk
2017
Puerto Rico Power
Crisis (Hurricane
Maria)
Hurricane Maria’s impact on Puerto
Rico’s energy infrastructure caused
unexpected margin calls as utilities
and power generators faced
extreme financial strain from the
massive power grid damage.
Power outages, economic loss
due to damaged infrastructure,
supply chain issues for energy
firms, and increased
government debt.
Weather risk
scenario
2020 COVID-19 Oil Price
Crash
The 2020 oil price crash caused WTI
to briefly trade negative, creating an
unprecedented liquidity crisis.
Companies like Occidental
Petroleum and ConocoPhillips faced
unexpected margin calls as
inventory glut and weak demand
ravaged cash flow.
Unprecedented price volatility,
reduced demand for energy,
massive inventory issues, and
liquidity problems for
producers.
Market price
risk
Extreme
volatility
© Copyright 2025, CCRO. All rights reserved. 5
Date Event Description Impacts Drivers
2011 Fukushima
Nuclear Disaster
The Fukushima disaster in Japan
caused energy prices to spike,
leading to unexpected margin calls
for utilities and energy firms
affected by the nuclear shutdowns
and subsequent market
uncertainties.
Energy price spikes, reduced
nuclear energy generation,
increased natural gas demand,
and global shifts in energy policy
toward renewables.
Weather risk
scenario
2014-
2016
Oil Price Crash
(Shale Boom)
The 2014-2016 oil price crash led to
a drop of over 70% in crude prices,
pushing companies like Chesapeake
Energy and Whiting Petroleum into
bankruptcy due to unexpected
margin calls related to high debt
loads and collapsing revenues.
Widespread bankruptcies in the
shale sector, massive job losses,
collapsing revenues for oil
producers, and severe financial
distress for energy firms.
Market price
risk
2015 Bankruptcies in
U.S. Energy Firms
A surge of bankruptcies among U.S.
energy companies, such as Linn
Energy, was driven by unexpected
margin calls as oil prices fell and
credit markets tightened, forcing
firms to default.
Bankruptcies in energy firms,
tightening of credit markets for
energy firms, and declining oil
prices.
Market price
risk
2016
Liquefied Natural
Gas (LNG) Market
Glut
An oversupply of LNG caused prices
to fall, creating liquidity issues for
major exporters like Qatar and the
U.S. This was marked by unexpected
margin calls as companies faced
financial distress due to a lack of
infrastructure to support the glut.
Financial distress for LNG
exporters, price declines in the
LNG market, and
underinvestment in LNG
infrastructure.
Market price
risk
2017
Puerto Rico Power
Crisis (Hurricane
Maria)
Hurricane Maria’s impact on Puerto
Rico’s energy infrastructure caused
unexpected margin calls as utilities
and power generators faced
extreme financial strain from the
massive power grid damage.
Power outages, economic loss
due to damaged infrastructure,
supply chain issues for energy
firms, and increased
government debt.
Weather risk
scenario
2020 COVID-19 Oil Price
Crash
The 2020 oil price crash caused WTI
to briefly trade negative, creating an
unprecedented liquidity crisis.
Companies like Occidental
Petroleum and ConocoPhillips faced
unexpected margin calls as
inventory glut and weak demand
ravaged cash flow.
Unprecedented price volatility,
reduced demand for energy,
massive inventory issues, and
liquidity problems for
producers.
Market price
risk
Extreme
volatility
