re: OT spin off: future of driller and oil services companies

quote:

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Based on what? Supply still out stripping demand? What would cause that to change in a few years?

Less players because of bankruptcies, Mergers and acquisitions?

Just wondering what could turn the market around for the sevice companies.

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Purely macro outlook
1) Deeper OPEC Cuts not likely
2) Oil inventories are crazy high
3) USA is now a prominent swing producer-5000+DUCS
4) Trump is offloading some oil on the market to help pay for whatever bill he's going to pass
5) Trump is planning on allowing for new leases on federal land
6) china demand/growth has slowed down
7) Qatar may flood the gas market if we keep provoking them

Some potential positives
1) Qatar and Iran mess that Trump is getting us into
2) A lot of bipartisan support for a carbon tax but Trump isn't for it(puts the nail in the coffin for coal)

I see the oil market as a purgatory or better yet a seesaw, production/supply cuts will be circumvented by US, Libya or Iran if not one of the other major players.