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The Worst of the U.S. Oil Investment Plunge Is Probably Over
Rig counts show signs of stabilizing after first-half slump that left U.S. economy bruised
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The slump in energy-related investment in the U.S. likely reached blowout stage in the second quarter. That's good news for the remainder of the year as smaller declines in spending on oilfield infrastructure stretching from western North Dakota to south Texas will become less of a drag on the economy, barring of course a collapse in oil prices.
When the government releases its first estimate of second-quarter gross domestic product on July 30, the data will probably show an even bigger decrease in outlays on mining, exploration and well shafts after a 49 percent annualized retreat from January through March, according to Daniel Silver at JPMorgan Chase & Co. in New York.