In my last rig roundup, I suggested that oil and gas producers might be putting the screws to service companies. Oilfield supplies got tight during the boom, allowing contractors to ratchet up rates regardless of the service quality. Now that we've got a sharp slowdown in activity, the operators once more have the upper hand.
Back in February, XTO Energy
Taking a look at Pride International's
Things are a bit bumpier over at Ensco
In the U.S. Gulf of Mexico, several jackup rates moved lower. An ExxonMobil
This is just one small slice of the oilfield service space, but I think the 30%-plus declines seen in some of these rates is fairly representative of what we can expect across the industry this year. Now you see why I was so hesitant to recommend an oil services stock in our Best Stock for 2009 series. (Core Laboratories