Melton Norcross

Navigating Oil and Gas Debt Recovery Amid 2025 Tariff Challenges

Apr 30, 2025Commercial Debt, Business, Economy, Featured

2025 U.S Tariffs impact on Oil & Gas Industry

Navigating Oil and Gas Debt Recovery Amid 2025 Tariff Challenges

The oil and gas industry in 2025 is navigating turbulent waters. Recent U.S. tariffs, combined with global trade tensions and OPEC+ supply increases, have driven oil prices to near four-year lows, with Brent crude projected to hover around $60–$62 per barrel by year-end. For oilfield operators, service providers, and suppliers, these economic pressures are translating into a growing problem: unpaid invoices. As clients struggle with shrinking revenues, the risk of defaults is rising, making oil and gas debt recovery more critical than ever.

At Melton Norcross & Associates LLC, we specialize in helping Texas-based businesses recover receivables in this volatile environment. Based in Frisco, Texas, our team understands the unique challenges of the oil patch and offers tailored debt recovery services to turn delinquent accounts into cash flow. In this post, we’ll explore how 2025 tariffs are impacting oil and gas receivables, share proven strategies to protect your business, and explain why Melton Norcross is your trusted partner in navigating these challenges. Ready to safeguard your finances? Let’s dive in.

How Tariffs Are Disrupting Oil and Gas Receivables

The oil and gas industry is no stranger to volatility, but 2025 has brought a perfect storm of economic challenges. Recent U.S. tariffs, including a 25% levy on oil and gas imports from countries purchasing Venezuelan crude, have tightened financial pressures across the sector. These tariffs, combined with a temporary U.S.-China trade truce that slashed tariffs from 145% to 30% on Chinese imports and from 125% to 10% on American goods, have created a complex landscape. While the truce has provided some relief, uncertainty remains as the 90-day pause ends in August 2025, potentially reintroducing higher tariffs.

This tariff-driven uncertainty has ripple effects. Global oil demand is projected to grow by only 0.9 million barrels per day in 2025, down from previous estimates, due to fears of a U.S. recession sparked by trade barriers. For oil and gas companies, this means reduced revenues and tighter cash flows, leading to delayed or unpaid invoices. For example, a Texas drilling contractor might face a client who can’t pay a $200,000 invoice because of lower oil prices and higher equipment costs driven by steel tariffs. Industry reports indicate that U.S. oil production could decline in 2026 for the first time since the COVID-19 pandemic, further straining finances.

The impact is clear: more businesses are at risk of default, making proactive debt recovery essential. At Melton Norcross, our debt recovery services are designed to help oil and gas companies navigate these tariff-related challenges, ensuring you get paid even in a tough market.

The Ripple Effects of Tariffs on B2B Debt Collection

Tariffs don’t just affect oil prices; they disrupt the entire supply chain, increasing costs for drilling components and reducing profitability. For instance, steel tariffs of 25% have raised the cost of drilling equipment, with some components jumping from $6,500 to over $15,000. This squeezes oilfield service providers, who may struggle to pay suppliers or contractors, leading to a domino effect of overdue invoices. Posts on X highlight the double blow for oil companies: falling product prices and rising drilling costs due to imported steel. In this environment, B2B debt collection becomes more complex. Clients may delay payments, citing cash flow issues, or become unresponsive as they relocate to cut costs. The risk of bad debt is particularly high in the oil and gas sector, where invoices often involve large sums. Without a strategic approach, businesses can lose significant revenue. That’s where professional debt collection agencies like Melton Norcross step in, offering expertise to recover funds efficiently while maintaining compliance with regulations like the Fair Debt Collection Practices Act (FDCPA).

Strategies for Recovering Oil and Gas Debts Amid Tariffs

To protect your business from unpaid invoices in 2025, you need a proactive approach tailored to the oil and gas industry’s challenges. Here are three proven strategies to strengthen your debt recovery efforts:

 

#01

Secure Payments with Oil and Gas Mineral Liens

Mineral liens are a powerful tool for oil and gas companies to recover debts by placing a claim on a debtor’s assets, such as wells or mineral rights. In Texas, where regulations are strict and deadlines are tight, acting quickly is critical. For example, a supplier owed $150,000 by a drilling company can file a mineral lien to secure payment, even if the debtor is facing tariff-related financial strain. Melton Norcross’s experienced team navigates Texas-specific laws to enforce liens effectively, ensuring you get paid. Learn more about our mineral lien enforcement services.

#02

Leverage Skip Tracing for Elusive Debtors

Trade disruptions and economic uncertainty can lead to debtors relocating or becoming unresponsive. Our Texas oil and gas collections include complimentary skip tracing, using licensed private investigators to locate debtors and their assets. This service, offered at no upfront cost, boosts recovery success rates. For instance, we recently located a debtor who owed $100,000 to an oilfield supplier, enabling negotiations that recovered 80% of the debt. In a tariff-driven market, skip tracing ensures you stay one step ahead of elusive debtors.

#03:

Partner with Professional Debt Collectors

The complexities of the 2025 oil and gas debt collection landscape demand expertise. Tariffs, falling oil prices, and geopolitical tensions require a nuanced approach to negotiations and legal actions. Melton Norcross uses customized demand letters, skilled negotiations, and a nationwide network of collection attorneys to recover funds without burdening your team. Our no-collection, no-fee policy means you only pay when we succeed, making it a risk-free solution. Whether you’re dealing with a $10,000 invoice or a $1 million receivable, our B2B debt collection services deliver results.

Why Tariffs Make Professional Debt Recovery Essential

The tariff-driven challenges of 2025 amplify the need for professional debt recovery. Oil prices have fallen significantly, with U.S. crude dipping to $57 per barrel in early April before a slight rebound to $59.56 after the U.S.-China tariff truce. This volatility, coupled with OPEC+ increasing output, has made it unprofitable for many U.S. shale producers to drill new wells. Companies like Diamondback Energy have warned that U.S. oil production has likely peaked, with a decline expected this quarter due to low prices and tariff-related cost increases.

These pressures translate to higher default risks. A recent report noted that the number of active oil rigs in Texas is at its lowest since the post-pandemic recovery, signaling reduced activity and tighter budgets. For oil and gas businesses, this means a greater likelihood of clients delaying or defaulting on payments. Professional debt collectors like Melton Norcross bring the expertise to navigate these challenges, using industry knowledge and legal tools to recover funds efficiently.

Why Choose Melton Norcross for Trade War Debt Recovery?

With over 30 years of experience, Melton Norcross & Associates LLC is uniquely equipped to handle the complexities of oil and gas debt recovery in 2025. Led by collections manager David M. Roche, our Frisco, Texas-based team understands the economic dynamics of the oil patch, from Permian Basin operators to national suppliers. Our specialization in Texas oil and gas collections and mineral lien enforcement sets us apart, ensuring you recover what’s owed even in a turbulent market.

We combine local expertise with a nationwide network of collection attorneys, allowing us to serve clients across the U.S. Our clients trust us because we deliver results. For example, we helped a Texas supplier recover $250,000 in overdue receivables from a struggling drilling company by leveraging skip tracing and lien enforcement. Our commitment to ethical, compliant practices ensures your reputation remains intact while we recover your funds. Learn more about our Frisco-based team.

How to Prepare for Debt Recovery Success in 2025

To maximize your recovery rates amid tariff challenges, preparation is key. Start by reviewing your outstanding invoices and identifying high-risk accounts, especially those tied to clients impacted by tariffs or low oil prices. Next, ensure your contracts include clear payment terms to strengthen your legal position. Finally, partner with a professional debt collection agency early to avoid delays.

Act Now to Protect Your Business

The 2025 tariff landscape is reshaping the oil and gas industry, but unpaid invoices don’t have to derail your business. With falling oil prices, rising costs, and economic uncertainty, proactive debt recovery is essential. Melton Norcross & Associates LLC is here to help you navigate these challenges, turning delinquent receivables into cash flow. Don’t let tariff-driven financial strain jeopardize your operations.

Contact Melton Norcross for a free consultation to discuss how we can recover your unpaid receivables. Call us at (469) 513-8458 or email us to schedule your no-obligation price quote. Melton Norcross & Associates: Your trusted partner for oil and gas debt recovery in 2025.

Do you have a business client that is more than 90 days late paying you?

If YES, we can collect the money that is owed to you.

As a professional commercial debt collection agency located in Frisco, TX, Melton Norcross and Associates specializes in helping businesses collect past-due receivables.

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