longs need the price of oil to go up ( or oil fields will be unprofitable)--by rigs being shut down ( until oil recovers) production will be slowed--less oil out there--which in turn would force the price of oil to rise again--it's all about supply and demand--too much oil is bad for oil prices--less rigs=less oil=higher oil price--good in the long run for energy companies-hope this helps
The price of oil will determine the future of Slca share price--if you think oil can eventually recover to $60-$80--Slca will pay off handsomely--and vice-versa--oil staying where it's at or lower--not good for share price--get your crystal ball out--where is oil 1 yr out ? Hopefully (if one is long) with the rig count down production should slowly slow down and also we are hoping world demand will be rising as economies get stronger.Best of luck to you!
sas... I believe these new lowered numbers have already been discounted by the markets--thus the shares having dropped from 73ish to 23ish with the markets always being forward looking. The shares had their big plunge,reflecting the lowered near-term expectations.Now,again with the market forward looking-it is starting to anticipate the oil price recovery and buyers are starting to bid up the shares.Already at ~30 up from ~23-24. My thoughts
get smart--go long some shares-Slca
robin...your logic makes sense--we differ in our opinions where oil bottoms--with the rig count lower week after week those inventory numbers will decline--we won't be producing as much oil as we have been for the simple fact there are fewer and fewer rigs pumping. IMO oil bottomed when it hit 43-44. It's floundering around here 48-52 and will start to head back up as those inventories begin to decline. We shall see-time will tell.