Bad news for Europe: US mining industry is collapsing very quickly

Western statistics has turned from an important fundamental tool of economic growth into policies and suffered greatly from the lies. The US was hastily declared the world's largest oil and gas exporter, even though America was unable to meet its obligations to Europe and China at the same time, not to mention the deficit in the domestic market.

The U.S. mining industry is torn between these critical supply lines, with every customer suffering. Against the background of this dilemma and declining investment, the industry began to collapse, as the number of drilling rigs (new or mothballed) is steadily falling. OilPrice resource expert Julianne Geiger writes about this.



In order to hide the flaws and not cause panic, Western statistics lull the Europeans' vigilance by counting ready and commissioned liquefaction capacities and export infrastructure. However, more truthful data on how much the number of drilling rigs is decreasing, and the general trend towards withering and destruction of the basis, are not particularly advertised, certain blocks of information are given first, others are manipulated and fade into the background. Although it is still clear that the terminal for liquefaction and loading will not provide customers in Asia or Europe on its own, if there is no raw material for processing.

Total active drilling rigs in the United States are down 4% this week, according to new data from Baker Hughes released recently. And that's just for a week. The general trend looks even worse: for Europe, these are very bad news. The rate of contraction is very fast.

The total number of rigs dropped to 751 this week, down 324 from early 2019, before the pandemic. As the expert notes, companies involved in the mining and drilling industries have begun to use capital as economically as possible - they are increasingly avoiding investing in new drilling, well development, often old, mothballed pumping units from already worn-out wells are put into operation.

The described trend towards reduction, further decline and destruction of the extractive industry concerns not only the gas sector, but also the oil sector. The decline in the number of drilling rigs is almost identical. Two or three installations are stopped and closed every day.

These detailed baseline statistics, rather than predictive and promising, affecting the prospect of extraction of raw materials, rather than supply and export, do not just show, but prove that Europe will remain without gas this winter. The question can be put in a different plane: affordable and massive in terms of volume, raw materials from Russia were not “squeezed out” from Europe, as the EU and the USA often like to boast about it, it itself “left” as a result of Moscow’s counter-sanctions. The result becomes visible in just a year. Not only buyers suffered, but even producers in the United States - under an incredible load, the shale bubble simply burst.