Layoffs, bankruptcies, falling demand and massive stockpiles. After three years of record American oil production, a gloomier reality is taking hold in the energy and mining sectors as commodity prices slip, The New York Times reports.
American oil companies have idled roughly 1,200 oil rigs, or more than two-thirds of the total in the U.S., since late last year, prompting layoffs for thousands of workers in North Dakota, Texas and elsewhere, according to the Times.
And mining companies are hurting, too. Mining giant Anglo American earlier this week slashed its workforce by 60 percent, or about 85,000 jobs; suspended dividend payments and cut capital expenditures.
The pain is tied in part to China’s economic slowdown. Weakening demand from China, the world’s leading economy, coupled with a supply glut, has upended the commodities market.