Debt a complicating factor in oil bust, Occidental CEO warns

• The massive amount of dollars owed and the terms they come with could force more oil and gas drillers to restructure their businesses in bankruptcy court instead of pursuing cost-saving combinations with competitors, Occidental Petroleum (NYSE:OXY) CEO Stephen Chazen tells the IHS CERAWeek conference.
• Companies typically can combine to reduce costs in times of struggle, but many oil and gas companies already have made deep cuts to overhead, and a number of loans come with terms that could make mergers difficult, Chazen says.
• In addition, many companies are holding assets that simply are not attractive to buyers at current low prices.
• Chazen also says he thinks the crude oil downturn has a roughly three-year lifespan, and the industry now is about halfway through the cycle.
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