Courtney Moeller argues recent oil market headlines are misleading. Reduced drilling will create a production gap that pushes prices higher later. Larger companies with lower breakeven costs stay profitable and can finish projects cheaper right now.
A lot of the headlines very misleading, but it's actually very good for us because it means that we're going to get things done cheaper. And then when you've got people that are going offline and not able to drill new wells, ultimately that's going to eventually slingshot the price of oil in the other direction, because we are not producing enough oil as it is. And the more operators that are being priced out of the market, that is creating a bigger gap in what is being produced and what we actually are needing to meet the requirements for the demand. And so it's going to end up slingshotting prices back the other way. So which is all very, very good for us. We just have to weather some lower prices for now. And if you're with these bigger companies that have lower break even prices, they're still making money. And then now we've created this situation where they're getting everything else done cheaper.
