Twin Butte Energy Ltd TBTEF

E&P Economics 101

[bshort92]

International oil service powerhouse Schlumberger just reported a 57% drop in earnings for the quarter from the same period a year ago. Why? Simply put most E&P concerns are postponing or delaying drilling efforts. Their is no demand for SLB's services in a super low price NG environment as is right now. The prices have tanked due to no demand. I suspect much gas out on the production platform will not go to market as shut ins are a realistic scenario. Rigs are sent back to the yard, prodcution ceases and the industry is at a standstill. What happens when NG demand picks up and the maxed out storage facilites seek inventory to replace? You don't just rub the genie lamp and get instant injection of 100's of thousands of BCF. Does not work that way. Once storage gets depleted producers wait to commence drilling so that their efforts have price and cost justification. Buy shares now. Wait for the prices to come up and then sell into rallies. Its like printing money if you follow the trend. The trend is your friend and this ain't rocket science.