Oil Price Recovery just ahead

[dan_s]

IMO if not for "Brexit" the price of oil would today be well over $50/bbl. You all need to read what the CEO of Core Labs is saying:

Oilfield services firm Core Laboratories (ticker: CLB) announced results from the second quarter 2016 today, reporting adjusted diluted earnings of 35 cents per share on quarterly revenue of $148.1 million.

Because of its worldwide customer base, Core Laboratories has been seen as a company with a firm grasp on the pulse of the industry and among the smartest companies in the oilfield. Core Lab is a unique oilfield service sector company that directs efforts toward the sciences of reservoir optimization and enhancement, placing the company in a direct line with the central tenets clients need: scientific understanding of how to obtain more oil and gas from the world’s reservoirs. They have offices all over the world and track activity in all significant basins.

David Demshur, Core Lab’s CEO, has a saying that goes, “The decline curve never sleeps, and always wins.” The inevitability of the decline curve gives credence to the belief that production will slow and the market will find a balance.

In its second quarter 2016 call with investors today, Core’s management team reaffirmed that it “continues to anticipate a ‘V-shaped’ worldwide commodity recovery beginning in the second half of 2016,” noting as evidence that “several U.S.-based operators have recently announced rig additions.”

You all need to read this article carefully: http://www.oilandgas360.com/core-lab-st ... dium=email


While you read it remember that I have posted here many time that, because for the steep drop in well completions, we are going to see the rate of U.S. oil and gas production decline accelerate in the 3rd quarter. Also, take a look at their "Well of the Future" and ask yourself how much frac sand it is going to take to complete that well.