Posted on 10/21/2015 5:03:45 AM PDT by thackney
North American railcar orders plummeted the most in at least 27 years as railroads shipped less oil and sand used for drilling, adding to concern over a U.S. industrial production slowdown.
Third-quarter orders for new freight cars plunged 83 percent from a year earlier to 7,374, according to the Railway Supply Institute. That’s the biggest decline since at least 1988 and the lowest number for a quarter since 2010. A “healthy” three-month number is 10,000 to 15,000, Allison Poliniak-Cusic, a Wells Fargo & Co. analyst, said in a note Tuesday.
Railcar makers including Trinity Industries Inc. and Greenbrier Cos. could be hurt by “a moderating U.S. industrial environment that could restrain freight traffic and new car demand,” Poliniak-Cusic said. The companies may also be affected by “ongoing tank car regulation issues, and potential pressure on lease rates and subsequent new railcar prices,” she said.
(Excerpt) Read more at fuelfix.com ...
The writer is either sloppy or does not understand that the sand is used as a proppant in fraccing. About the last thing you would want in a drilling fluid is a lot of sand while you are drilling.
Send all the railcars to Europe so they can deport the “refugee” invasion.
The oil industry kept the US economy from experiencing another Great Depression during the Obama reign. Since its collapse, there is no other segment that has taken its place. Next year will be bad. Save your money, and use your fuel savings to pay off debt.
I would guess sloppy.
I see it a lot in mainstream media and public posts, referring to the hydrofrac as drilling.
Ping......
Railroad story.
The other biggie is ‘rigs pumping oil’. Nope. Those are pump jacks. Rigs are either drilling the hole or servicing it, and the two types (at least on land) are generally distinct from a distance.
And sales of well cars that carry double stack containers will continue to climb, and if they improve the technology, we could also see a surge in RoadRailer cars to the likes of UPS and various trucking companies.
Thanks, learned a lot from just those 8 posts.
Concur. The once booming sand mines in my area are now all but moribund. Apply the economic multiplier to what the oil industry once produced and you will see that we are now at the leading edge of a significant economic slowdown.
Moreover, it is my understanding there is a big slowdown in shipping containers as well. Combined, the wheels of the economy seem to be screeching from hard braking.
Since when do we expect AP “jounalists” to actually have any idea what they’re talking about?
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