Trade Accounts Receivable

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Trade Accounts Receivable

Trade Accounts ReceivableThe allowance for credit losses, which was $3.5 million and $5.0 million as of June 30, 2021 and December 31, 2020, respectively, is our best estimate of the amount of probable credit losses included in our existing accounts receivable.

The following summarizes activity within our trade accounts receivable allowance for credit losses balance (in thousands):

	Allowance for Credit Losses
Balance as of December 31, 2020	$	4,982
Current-period provision for expected credit losses	(1,250)
Writeoffs charged against the allowance	(194)
Balance as of June 30, 2021	$	3,538

We recognized a $1.3 million reversal of our provision for expected credit losses for the six months ended June 30, 2021. Improved market conditions for customers due to a recovery in crude oil prices was the primary factor contributing to the decrease to the allowance for credit losses for the six months ended June 30, 2021.

For the three and six months ended June 30, 2020, we recognized a $2.2 million and $3.7 million provision for expected credit losses, respectively. Low crude oil prices, driven by decreased demand for and global oversupply of crude oil as a result of the COVID-19 pandemic, was the primary factor contributing to the higher allowance for credit losses for the three and six months ended June 30, 2020.