America’s oil industry: The tough get going PRIDE of place in this week’s Houston Auto Show goes to “Texas Edition” trucks: hulking vehicles, selling for $ 50,000 and upwards, specially designed for the Lone Star state’s expansive tastes. Allout Offroad customises them further, lifting the chassis to fit outsize wheels and tyres. They are selling “like crazy”, says the firm’s boss, Chance Kamp. “People can afford to put gas in them now.”Houston, America’s fourth-largest city, is poised between the joys of cheap fuel and the pain of the industry which produces it. Dave Lesar, chief executive of Halliburton, which provides drilling and pumping services, says its customers are cutting spending by 25-30%. On January 21st BHP Billiton, a giant miner and oil producer, said it would cut the number of its onshore oil rigs in America by 40%. A so-far modest fall in the total number of active rigs (see first chart) is set to accelerate.A survey of 225 companies by Barclays, a bank, forecasts that if crude settles in a range of $ 50-60 a barrel (it was below $ 50 in the middle of this week) the industry worldwide will cut its capital spending by 9% this year, to around $ 620 billion.Consolidation has been... The Economist: Business economist/news/business/21640328-amid-gloom-and-cutbacks-industry-strong-will-get-stronger-tough-get-going?fsrc=rss%7Cbus International Business News - Your source for up to date Global business! #internationalbusiness #business #investment #news
Posted on: Thu, 22 Jan 2015 20:30:13 +0000
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