![\"Oil](\"https:\/\/www.businesspundit.com\/wp-content\/uploads\/2016\/04\/Oil-Drilling.jpg\")
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The 40 largest publicly-traded US oil companies lost a combined $67 billion in 2015,\u00a0according to Energy Information Administration research.<\/p>\n
Those losses are expected to continue in 2016 as oil prices remain near $42 a barrel.<\/p>\n
Losses surpassed $1 billion each for many companies including EOG Resources, Devon Energy, and Linn Energy, among others.<\/p>\n
The EIA research did not include ExxonMobile and Chevron, which posted a profit last year, although their profits shrunk considerably.<\/p>\n
Research found that the oil companies most vulnerable in 2015 were companies that took on large amounts of debt in previous years. 18 US oil companies combined for $57 billion in long-term debt and they also posted the biggest losses in 2015.<\/p>\n
The biggest losers had an\u00a0average long-term debt-to-equity ratio of 99%, the EIA said.<\/p>\n
When an oil companies takes on a large amount of debt, it becomes harder to make interest payments when sources of income dry up, as they did in 2015 and early 2016.<\/p>\n
Oil prices have rebounded from $26 a barrel in February to above $42 today, however, oil companies are still under significant financial pressure. Many US firms have said they need oil prices over $50 to $55 to cover their expenses and possibly turn a profit.<\/p>\n