RE: The Myth of OPEC+ Spare Capacity25 Jan 2022 21:00
O&W if you look at the monthly chart of Hunting PLC it rides the cycles pretty well, though it's gone up by ~50% the past month.
Petrofac whose share price is low(ish) has the SFO negative sentiment hovering over its head, albeit that's starting to clear.
There is also John Wood Group, they've had a run in with the SFO and are still paying off their fine, but are more advanced in the SFO process than PFC.
I personally prefer to have more of my money in producers than servicers as I feel I can get a better return. I feel the lefty ESG nonsense and sleepy Joe's anti oil rhetoric have much more of a negative impact on sentiment of the servicers than the producers. Examples are the low US rig count and lack of investment from the majors generally in generating increased production which have a negative impact on the servicers revenue. Producers, as many are aware, benefit (yes I'm aware of the declining reserves ramifications, but don't want to bore people more than I have to!) from the higher O&G prices resulting from the lack of production investment etc.
Once the oil price gets high enough and more and more O&G companies start going for growth (once their funders, in the US especially, loosen the leash) investment in increasing production will rocket and the servicers revenue will do the same.
However, this still seems 1 to 2 years off to me anyway. Then like all commodities booms the amount of the commodity produced will exceed demand and prices will fall - "the best cure for high commodity prices is high commodity prices"
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