I’m not too bullish on oil field services companies right now due to the natural gas supply levels. Until we start seeing a continued significant draw down in inventory, I might shy away from the service sector as a whole.

There are far more natural gas wells out there than oil wells, and if we ever see a mandatory curtailment of production, you’ll see the service companies suffer as well.

I think there has become a disconnect between natural gas prices and inventory levels. We’re still seeing high storage levels compared to past years, but the speculation in the market is keeping the prices high anyway.

But, if you don’t have anywhere to store the gas, it doesn’t matter how much you get paid for it!

I’ll check out McDermott and do a little research…

-Grant

What is the easiest way to determine whether your working with a crook or not?

Is now a good time to be looking at investing in oil wells?

Thanks, Tom

There are a lot of risks invovled. But the rewards [when they exist] are substantial.

One of the big risks is that the promoters are in it just to raise the money. They’ll hire a marketeer and pay him 30% of the money raised. Then they’ll drill some hole for much less than what they’ve raised and claim it was a dry hole. Even if it does produce, they cap it and still claim it was a dry hole! And its on to the next project!

I’m currently partnering with an operator on a gas pipeline deal. That should be insanely profitable with low risk. But low risk isn’t risk-free! lets see how that goes.