Falling Oil Prices Present Challenges, Opportunities and Uncertainty in 2015
These companies, by virtue of their stock prices, are clearly suffering in the short-term due to the price of oil. In order for these companies to be in true trouble, it will take oil prices stagnating at these levels for, at least, a few quarters.Â The oil drillers are not going to be changing their production models significantly for one quarter of what equates to a market shock. It would take a real prolonged period of prices holding at their current levels to cause much change in the oil drillersâ behavior, lowering production and fomenting consolidation. It is that kind of industry long-term sea change that will depress the oil services sectorâs prospects.