Oil speculators are calling a bear market because of the lack of rig count? it looks like they forget that is was Wall-street that asked the oil industry to rain in spending get some positive cash flow on the books..
The largest oilfield service company in the world has seen its earnings hit as the shale industry goes through a soft patch. S&P cut Schlumberger’s debt rating to A+, down from AA-. Meanwhile, Halliburton saw its outlook downgraded from “stable” to “negative.” –oilrag
Yet they don’t count companies like Liberty Oilfield that have been taking market share from those big companies as one of the reasons, also Oil companies have been more reserved in regards to CAPEX even as oil prices have been trending higher.
In the past, oil would go up and so would investments, creating a boom and bust cycle. not this time. Oil companies have been more calculated and restrained in spending to keep Wall Street happy.
From the looks of it , we have A return to strong cash flow mentality in the oil patch.
submit an oilfield life pic and get featured.
What do you think?