Oil services lasts longer because they will still be busy until the price of energy falls enough to discourage exploration and maximum output. That is not going to happen unless oil collapse below $40 and ngas drops down below $4.
Not likely to happen so drilling will go on and oil services will be busy and profitable. They may not be the darlings of Wall Street and their stocks may not reflect the earnings but they will do well as individual companies.
Even if oil drops to $40, most oil companies will post huge profits. CNBC proudly crows when oil drops .50 but it could drop $15 and still have energy companies making tons of money. There is tight supply of the commodity and the American consumer has not demonstrated a big enough IQ to curb consumption very long so my view is the struggle for sufficient supply will go on and prices will fluctuate but trend up. There will be innovation in coal and LNG and coal bed methane to lessen the problem but it won't go away for a number of years, if ever.
As always, we can identify a primary theme as an investor but not see results in stock prices. Look at housing. Builders were undervalued all thru their boom because analysts kept calling for the bottom to drop out. Like the broken clock, eventually they will be right. So it could happen with energy. Stocks may stay undervalued for a while as analysts say it's just another boom and bust energy cycle. If I'm right, eventually they will have to come back to energy stocks because we need it and we aren't finding enough to satisfy hungry consumers.
Bobwins
Please post stock symbols first in all your posts. If it's a foreign stock, please list the US pk equivalent symbol.
If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
AI
