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    Moody’s: Oil Industries Face Worst Downturn Since 1980s Amid Low Prices

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    Low energy prices continue to negatively impact the global oilfield services and drilling (OFS) industry that is facing the worst economic decline since 1980s, Moody's Analyst Sajjad Alam said in a press release on Friday.

    WASHINGTON (Sputnik) — The analyst explained that low oil prices have prolonged lower spending by exploration and production companies, which are set to experience an increase in defaults.

    "The OFS industry is facing the worst downturn since the early 1980s after an unprecedented drop in global oil and North American natural gas prices," Alam stated.

    "Drilling activity has plummeted in most oil producing regions, curbing demand for oilfield support services," Alam added.

    Global land drilling reached a 17-year low in April, according to the press release. In addition, the rig activity in the United States hit the lowest point in 40 years.

    Oil prices have plunged more than 60 percent from their peak of over $110 a barrel in June 2014 due to the global oil production outpacing the world’s demand.

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