Oil and Gas service industry prices in free fall.

The decision by E&P companies to cut capital expenditures and increase efficiencies following the dramatic fall in oil prices put downward pressure on other sectors of the oil and gas industry.

The Bureau of Labor Statistics (BLS) tracks the rates oil and natural gas service companies are receiving for goods and services through its Producer Price Index (PPI). From June 2014 to May 2015, when oil and gas prices as measured by the PPI fell by 49%, service industry prices followed suit:

• Rates for drilling activity fell 19.6%
• The price of sands used as proppant for hydraulic fracturing fell 12.5%
• Support activities, which include the surveying, cementing, casing and otherwise treating wells, fell 1.4%

See the charts and graphs at (Oil and Gas 360) Read More...

Also see our look at the Export/Import issue facing congress.