OPEC cuts does not seem to be effective as other countries are pumping more. NOV can't make good profit below $60-65 or let's say no profit at all.
Chinese and Korean equipment is all over the place, dirt cheap. I can't see how is our great leader, cost-conscious CEO going to move the company forward without more layoffs. Anything drilling-related will be sayonara.
The question is who's going to flinch first... and no one has an idea who's going to do it first. The real problem is that for the foreseeable future the upstream and downstream folks are pretty comfortable at $40/barrel. It's just the midstream and service folks that are struggling.
As predicted, OIL is dropping like a rock to $40s, maybe high $30s within 6 months, especially with any signs of the global recession. This company will continue to be decimated, can't compete with dirt cheap Chinese and Korean equipment.
I certainly hope this will spell the doom for NOV, as this is an extremely unethical and discriminatory company. I can't wait to see them starting to lay off again.
Might head back to low 40s before a real pickup happens. Record stockpiles at 518 m/b. Shale is picking up and offsetting opec cuts. Dont see anything positive till maybe late this year, if were lucky.
Its onlt still stabilized at $52 a barrel because of US shale boom, not other countries