If you're paying $200,000 a day for a rig that you used to pay $150,000 for, you're also going to pay more for services, especially if those services will save you a few days on the well. |
Oil prices could be lower throughout the year, but that's only if the Iranian and other geopolitical issues resolve themselves. Overall, the commodity price looks decent. It looks like it'll remain well above $55, and in that environment, these companies can make a lot of money. |