Drop in US Gas Drilling Eats $1 Billion in Profits

Bloomberg reported that companies that provide natural gas drilling services are watching their profits evaporate. Waning demand with rigs seeking natural gas has fallen to lows not seen for 24 years.

As quoted in the market news:

The overall U.S.  onshore rig count has dropped 9 percent this year, seeing the most sustained declines since the recession-led plunge in 2009. Those declines, caused in part by the gas industry’s shift to oil production, are eating away demand for drilling services and worsening a shale-equipment glut that’s pushing down prices. Once-surging profits from hydraulic fracturing, or fracking, are fading as oil and gas producers become more cautious about spending amid lower energy prices and global economic troubles that are damping demand.

Click here to view the full Bloomberg report.