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Originally Posted by Bunk
Thanks everybody. I’ve heard a few politicians and pundits suggest that even with higher prices, this could be a “jobless recovery” in the patch - with so much emphasis on keeping costs down, companies will realize good profits, but not necessarily ramp up any spending or hiring. What does the brain trust think of this assertion?
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Hearing much of the same. Operators putting much of the money towards fixing their balance sheets before they begin to spend it on drilling etc.
Quote:
Originally Posted by Ashartus
On the service side I'm still hearing a lot of "even though oil is back over $60, we still need you to keep the rate reductions we forced on you when oil was $0."
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Yup. Same old battle. Our prices have been under relentless pressure since probably 2014 and clients are constantly pressuring for lower rates or looking for other ways to reduce what they pay to service companies. At least on our product line.
Quote:
Originally Posted by nik-
If services demand outpace supply the prices will shoot up again like they always have. This is a pretty short term change in oil pricing, it's not exactly time to just set things back to the way they were yet.
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Maybe some services can get some kind of increases but not many. And even if they do the money goes right back out the door in the form of wage increases, equipment etc. and we don't often see it on the bottom line. When I moved to Calgary in 1997 our day rates were higher than they are today, and that's not counting inflation.