By Agnes H. Baker2016-06-30T08:22:00+01:00
The US Real gross domestic product (GDP) continued to just inch along, increasing 1.1% in the first quarter of 2016, according to the most recent estimate by the Bureau of Economic Analysis (June 28, 2016).
Whilst in the fourth quarter of 2015, real GDP increased 1.4%.
The first‐quarter increase in real GDP mainly reflected an increase in consumer spending on services, notably on healthcare and on housing and utilities. Consumer spending on nondurable goods also increased, but is of little consequence to the industrial gas (IG) industry.
Consumer spending on durable goods declined, notably on motor vehicles and parts, signaling more challenges for IG in those sectors.
Housing investment, state and local government expenditures, and exports each increased. These positive contributions to GDP growth were partially offset by declines in other sectors, all of which are IG markets: business investment in equipment and in structures decreased; farm and nonfarm private inventory investment declined; and, federal government spending declined, notably on national defense spending.
Each January, we look at macroeconomic trends that influence industrial gas markets. These trends—like rising or falling worldwide GDP, geopolitical movements, shifting energy supply and sourcing, and even natural disasters and climate change—influence what products and technologies will be in demand, or perhaps in short supply.
Unconventional reservoirs present unique challenges for energy producers and oilfield service companies that seek to extract the maximum economic lifetime potential from their wells. These reservoirs, including shale, tight sands, and coalbed methane (CBM) formations, are defined by their low permeability, low-to-no porosity, and need for stimulation for economic production
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