Posted on 01/19/2016 3:09:58 AM PST by thackney
...By turnover and investment, petroleum exploration, production, refining, transportation and marketing is one of the largest industries in the United States and around the world.
In the United States, businesses engaged in oil and gas extraction and refining spent almost $200 billion on new equipment and structures in 2013, the most recent year for which data are available.
Oil and gas extraction and refining accounted for more than 14 percent of all new capital expenditures in the United States in 2013, according to the U.S. Census Bureau.
Oil and gas drilling and associated services on their own accounted for more than 13 percent of whole-economy capital expenditures...
The oil and gas drilling boom drove an enormous amount of extra expenditure and provided a significant boost to the entire economy....
Unsurprisingly, the collapse in investment spending has produced a measurable slowdown in the broader economy.
The downturn is evident in everything from data on industrial production to freight movements by road and rail....
The impact is not confined to the United States. Oil and gas projects around the world worth $380 billion have been postponed or canceled since 2014 according to Wood Mackenzie, an energy consultancy.
Several hundred thousand jobs have been lost at exploration and production companies and oil field services firms.
But these are only the direct spending cuts and job losses. The downturn in oil and gas is rippling all along the supply chain.
The oil and gas industry is not just a major producer of inputs used by other manufacturers, service suppliers and households, it is also a major consumer of raw materials, manufactured items and services itself.
(Excerpt) Read more at reuters.com ...
Replying to myself here on the “more and more socialist” remark.
Here’s an idea of what incremental socialism gets you:
2014 US GDP=17.4T
2014 EU GDP=18.5T (in USD)
2014 US Population=319M
2014 EU Population=508M
So under a European style socialism, where US is getting closer to, you have about 59% more people but only about a 6% bigger economy.
Woo-hoo, can’t wait for that!
Leftist dweebs start clamoring for fuel tax increases?
Those furnaces burn a lot of NatGas.
Let me guess. The solution is another bailout.
True! Look at the last two quarters of your own chart. And the projections - everything forward the dotted line - that is pie in the sky wishful thinking.
Every year has cyclic demand from summer to winter. It shows in every year of this chart.
Compare 1st quarter to previous 1st quarter. Compare 4th quarter to previous 4th quarter.
Don't compare summer driving peak to winter and claim demand is falling.
Never. No bailouts. Not for any group.
you are correct...... the plentiful supply of gas is being used by the oil companies to enlarge their plastics manufacturing capabilities
that enlargement results in capital expenditures for the new plants
Texas continues to benefit
Interesting... Like who...
What is AR?
The market is down because a drop in oil consumption is believed to signal a global economic slowdown.
Low gas prices are good for the economy overall, but bad for the oil industry.
Thanks!
Shouldn’t everything that was impacted by high oil prices (food, transportation) also be impacted by low oil prices? It would seem to me that the low prices will be reflected on consumer goods. if the market was whining that food cost more because of transportation costs, well now food should cost less.
While I feel horrible that thousands will lose jobs, that’s also the risk of working in an industry where there is volatility. If you are a company in this industry and you didn’t financially plan for this, then shame on you.
Oil market is down due to supply rising greater than demand.
There is not a drop in oil consumption.
Keep the oil HERE, and quit sending TRILLIONS of dollars to countries that hate us. That cannot help but be good for us.
We dont have refineries? BUILD THEM!
Accounts Receivable
http://www.investopedia.com/terms/a/accountsreceivable.asp
The US has a refinery surplus. We refine more than we use and export the surplus.
Problem with this appears to be that we are transferring from capital spending for O&G which has a high domestic manufacture component to consumer spending where manufacturing is more overseas focused.
This ripple effect is deflationary and slows the overall economy.
Is AR listed somewhere on this page (or a comparable page)? I don’t see it:
http://finance.yahoo.com/q?s=CAM
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