With energy investment now in decline due to the Saudi price cuts look for this component of GDP to head south, as yet another ‘borrowing to spend’ generator fails to sustain its growth rate and odds of negative Q4 GDP growth increase dramatically.
By Lynn Doan
Nov 7 (Bloomberg) — The shale-oil drilling boom in the U.S. is showing early signs of cracking.
Rigs targeting oil sank by 14 to 1,568 this week, the lowest since Aug. 22, Baker Hughes Inc. (BHI) said yesterday. The Eagle Ford shale formation in south Texas lost the most, dropping nine to 197. The nation’s oil rig count is down from a peak of 1,609 on Oct. 10.