US Freight Shipments Fall Below 2014 Level as Money Dries Up for Oil/Gas Drilling Industry

US Freight Shipments Fall Below 2014 Level. Answers Emerge | Wolf Street

While other industrial segments may be trying to scramble out of the decline, the oil-and-gas drilling industry is forced to cut back on purchasing equipment and machinery as money is drying up. Investors in these companies, which need much higher oil prices to be cash-flow-positive, are grappling with another existential crisis.

In 2019 so far, about three dozen oil-and-gas drillers have filed for bankruptcy. Other drillers, such as Chesapeake Energy, are jostling for position at the filing counter. They’re leaving investors exposed to heavy losses, including billionaires who thought they’d picked the bottom in 2016 […]

via US Freight Shipments Fall Below 2014 Level. Answers Emerge | Wolf Street — AGR Daily News

11 thoughts on “US Freight Shipments Fall Below 2014 Level as Money Dries Up for Oil/Gas Drilling Industry

  1. I followed the leads to Wolf and saw lots of statistics but no attempt to explain why this is happening, except to blame tariffs. I suspect the “world economy” is slowing down. Could people be buying less, shipping less, and using less oil? Perhaps consumerism is losing its panache? (Would that it were so.)

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    • There is definitely less consumerist hype but I don’t think it’s because people are wising up. I think it has to do with general economic entropy: wages stagnant or dropping, tens of thousands of jobs disappearing, costs of literally everything rising, taxes, staples, health care, education. The West’s economies are dying, soon to be followed by the newcomers to the capitalist BS, particularly some Arab nations, India and of course China. The game is over but people in general have learned nothing at all. They will hang on, picking up scraps and leftovers, blaming each other, never the psychopathic plutocracy that instituted and manipulated a parasitical system that sucked the life out of people and planet. I know that reads like hyperbole but observation says it’s sadly true.

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    • It’s really hard to follow exactly what’s going on, Katherine, but it’s my impression that the global economy has been steadily shrinking since 2008 – mainly because most governments are using austerity measures to shrink the money supply. In the US, the number of jobs in the economy has definitely shrunk – and those that remain offer such poor pay that most workers have no disposable income. There’s still a lot of buying on credit cards – statistics show private debt in increasing. According to Australian economist Steve Keen, high private debt levels are a good indicators of economic collapse – which happens when consumers have no more money to spend:

      https://stuartbramhall.wordpress.com/2018/12/24/the-science-of-predicting-the-next-financial-crisis/

      Liked by 1 person

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