Investments in energy are drying up as energy companies continue to struggle with dismal oil, gas and coal profits.
Analysis published Wednesday by the Energy Information Administration shows mining and exploration investments declined by a whopping 35 percent from 2014 to 2015, largely due to cheap energy. Such huge declines in investment levels curtails exploration, which means less oil will be available later. It also means that when oil prices eventually recover, they could skyrocket.
American oil companies have publicly stated they plan to invest even less money to balance spending with lower cash flows until the price of crude oil increases.
Cheap energy has been great for American consumers, but has devastated major American energy companies. The only consolation is that cheap oil is likely worse for the rivals of the U.S. energy industry.
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