• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days The United States produced more crude oil than any nation, at any time.
  • 2 days e-truck insanity
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 7 days China deletes leaked stats showing plunging birth rate for 2023
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Bad news for e-cars keeps coming
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Little To No Value In Oilfield Services Yet

I’ve got deadlines – and a new set of columns to be written about the energy space every week. These days that’s tough, because there’s so little to like in the energy sphere, even as the stock averages hover near to index highs. More bad news surfaced today in the oil services sector, making the big services companies like Schlumberger (SLB), Halliburton (HAL) and particularly Helmerich and Payne (HP) difficult places to find value.

With the rig count drop, we haven’t yet seen a major drop in production – but activity is certainly way down. That impacts the oil services companies most, and it’s not just in the shale players that we find that kind of distress. Recent predictions in other areas of oil production have been dropping equally strongly, as in oil sands production in Canada. Just take a look at this small chart of what was expected in Canadian production as of June 2014 as opposed to what is the new reality of expectation now:

We could look at lots of other places as well to see the collapse of oil services activity in other oil areas, including offshore in Brazil and domestically in Venezuela, but the point is clear: There’s going to be a smaller pool of work for everyone.

This has expressed itself in a free-for-all of pricing discounts for the remaining rigs onshore and offshore that are going to be working through 2015 and into 2016. If you want to keep clients, you’re going to have to compete on price – it’s as simple as that. Here’s…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News