The helicopter industry is one casualty of the fracking boom
Environmentalists aren’t the only group complaining about the recent boom in hydraulic fracturing, or "fracking," in the U.S.
United Technologies Corp.’s Chief Financial Officer Gregory Hayes said in the industrial conglomerate’s post-earnings conference call with analysts that the company’s Sikorsky Aircraft unit is seeing some pressure in its helicopter business, given the impact that fracking has had on the offshore oil business.
"With fracking in the U.S. growing so significantly, we’re seeing less of the oil and gas exploration expansion, which had driven the big ramp-up in commercial helicopters," said Hayes.
The executive said there was still a market for the helicopters, as Sikorsky is expected to deliver 40 commercial S-92s this year, and "a couple more” next year.
"It’s just that we’re not seeing quite the same growth because of the prevalance of fracking here in the U.S.," Hayes said.
The explosive growth in fracking has been a boon for the economies of several states, and has helped lower oil prices and reduce the U.S. reliance on foreign supply, but environmental groups have worried that it creates a greater greenhouse gas footprint.
I/C