The whole idea of borrowing money to pay dividends looks very bad. I'm guessing that a lot of this delinquent debt is from smaller companies that don't pay dividends. But the oil majors could be in trouble too. Banks may need to write down oil and gas debt. This can send more financial distress signals across the industry. Conclusion, financing for oil and gas is going to get more expensive. This will slow the flow of capital until fuel prices recover. It may even become too expensive for oil majors to keep paying out dividends.