Lunch with Baker Hughes Rep
Had lunch with our Baker Hughes drilling rep today.
He is seeing capital discipline across the publicly traded companies & was shocked to see this $70 handle not like times before, where a company would add a rig or two. Only company he has heard that wants to add rigs is Chevron but everyone else is staying at their allocated budgets from the beginning of the year.
I asked about small PE shops coming in & trying to drill some quick returns, he said he had thought the same thing & has reached out to many but they seem to be struggling to find financial backing (not green enough of an investment?)
Regardless, one good boots on ground take.