The 2017 market doubled after a sickly 2016. The 2018 market growth shown here is based on the assumption that WTI oil prices will AVERAGE $60 during the year (which means oil prices would have to drop from today!). If instead oil averages $70, the US market will rise to about $140B…almost equaling its all time high from 2014.
But is this profitable? The investors want to know. In the first half of 2017, we had market growth, but limited profit growth. In the second half of 2017 (and particularly Q4 2017), the oilfield equipment and services sector saw a return to profitability on individual jobs and company wide. We say 2018 will be profitable and growing.
If Nikita Khrushchev were the head of the oilfield, he would have burst a blood vessel in his head pounding on the table trying to capture the attention of the investors of the world last year. A quick glance at share prices heading into January 2018 tells us he would have been right. Pay attention, people, profitability is back.