23.08.2019 19:20:00

Is There Any Hope for Oilfield Services Companies?

Just recently, oilfield services companies reported their Q2 earnings. They were bad, but Q3 is forecasted to be even worse. The lifeblood of oilfield services companies is drilling and completing wells. After discovery, drilling is the next step in hydrocarbon extraction. It's little more than drilling a hole vertically, and then usually horizontally, to get to the reserves. Oilfield services companies make money by leasing rigs and contracting their crews to companies like ExxonMobil or Chevron, known as the operators of the well.The best way to keep tabs on the health of drilling activities is the Baker Hughes rig count. Released weekly and free to access, the rig count provides a good reading on drilling activity, allowing investors to gauge if new wells are being brought online.Continue reading
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