Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
Posted: Tue Aug 12, 2008 6:30 am Post subject: Re: We are few
You might want to dig a little deeper ushoys. It's more than just "surviving" PO that's at issue. There are actually a few ways to benefit from it. Doesn't really take too much effort to find those threads these days. But, then again, that's why we have a free will: choose your path and stick with it.
Joined: Aug 03, 2006 Posts: 4338 Location: Graceland
Posted: Tue Aug 12, 2008 6:36 am Post subject: Re: We are few
ROCKMAN wrote:
You might want to dig a little deeper ushoys. It's more than just "surviving" PO that's at issue. There are actually a few ways to benefit from it. Doesn't really take too much effort to find those threads these days. But, then again, that's why we have a free will: choose your path and stick with it.
ROCKMAN, you're a good person to run this by. Do you see any downside to the oil services sector in the next few years? I don't. It seems like they are going to make a LOT of money whether oil is at $80 a barrel or $160 a barrel.
Given that there are some real bargains in that sector right now, is there maybe something I'm missing? It seems almost too easy.
Any notes of caution from our man downtown? _________________
Posted: Tue Aug 12, 2008 7:38 am Post subject: Re: We are few
I don't follow the service companies Tex. But my basic instinct says they'll continue to run parrallel to the rig count so as long as it looks solid I would have faith. The only area I might be a little more careful is with the big deep water rig contractors. They've been taking on a lot of debt with their new builds. But demand for those rigs doesn't seem likely to drop anytime soon thanks to Petrobras. But it still makes me a little nervous. The big rigs ususally take 4 or 5 years to payout. That seems like a long time to project increased future DW activity. But it probably will still work.
Posted: Tue Aug 12, 2008 10:37 am Post subject: Re: We are few
I spend a little time following the service end of things and have to say that is where more and more of my allocation is heading. Big oil needs that sector to maintain any hope of future production. Record investment by big oil translates into a significant part of that investment being spent in the service end of the equation. Service costs will go up, but that will just be passed along up the food chain. Smaller land based rig builders & drillers, pipeline operators (especially n-gas), frac outfits, rig transport services, smaller specialty chemical producers, hotel operators in oil patch markets, etc. All those seem poised to do a great business in the next several years.
Posted: Tue Aug 12, 2008 10:47 am Post subject: Re: We are few
I agree Gregg. One big advantage with the service sector is the lag time. Even if drilling economics plunge for whatever reason and companies throw the brakes on hard there would still be a good 6 month lag before it hits the service sector. Plenty of time to take the profit and bale.
All times are GMT - 6 Hours Goto page Previous1, 2, 3, 4
Page 4 of 4
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
News
Discussions
Resources
Members
Forum FAQ
Search
Usergroups
Profile
Log in to check your private messages
Log in
