Baseball Hall of Famer and philosopher Yogi Berra said it best: “If you come to a fork in the road, take it!” And thus we forge ahead into the 2nd half of the year despite the occasional speed bumps and obstacle course we fondly call the oil patch.
Interestingly enough, “patchy” seems to be the operative word this quarter. Overall demand continues steady and contract drilling operations have remained relatively resilient. Unfortunately, there are two sides to every coin and economics is a large part of the equation. As we wrap the August Report, oil prices just hit a three-month high while nat gas and its one-time saving grace, natural gas liquids, are struggling to recover. This makes for a precarious OCTG market as mounting short term concerns undermine operator confidence.
So where do we go from here? If we turn to Yogi for his closing thoughts he might remind us, “The future ain’t what it used to be.” In fact, it’s better! Thanks to our industry’s innovation and ingenuity, in just a couple decades we’ve gone from being hopelessly dependent on imported oil and nat gas to the prospect of being a net exporter of the same; proving that U.S. energy independence is no longer a pipe dream.