How staying at home in 2020 affected the transportation industry: Part 2 : Less travel, less fuel

We continue our series on recent developments in the transportation industry by looking at petroleum and coal products. Like transportation equipment manufacturing (from Part 1 in the series), petroleum and coal products have been affected by the pandemic’s travel reductions. Unlike transportation equipment manufacturing, looking at net income/loss after taxes doesn’t tell the whole story.
To understand the effects that travel reductions have had on petroleum and coal products, it’s important to compare net income/loss after taxes with another measure: net sales, receipts, and operating revenues.
The FRED graph above shows the petroleum and coal industry’s net income after taxes as well as net sales, receipts, and operating revenues (a.k.a. “sales”). Petroleum and coal products may have lost less money from the first quarter to the second quarter of 2020, but the industry lost more per dollar sold.
For example, in the first quarter of 2020, petroleum and coal products lost $13.8 billion

Federal Reserve Source

Author: RealEstate