We fired up our Oilfield Investor Workbook on Monday morning to scenario plan for service companies and for entire oilfield service markets.  Our OIW has all the quarterly product line histories of hundreds of oilfield service companies, and we’ve built it to quickly forecast each company’s product line revenues given certain oil price assumptions.  

Here’s a few notes about companies and markets assuming that the futures strip of WTI is what actually happens through the end of 2021:

HYDRAULIC FRACTURING:  With $32 oil prices in Q2 2020, the global frac market falls from $6.4B in Q4 2019 to $2.9B in Q2 2020.  

SUBSEA EQUIPMENT:  This oilfield market has less damage than others with $32 oil prices in Q2 2020. The global subsea equipment market falls from $3.4B in Q4 2019 to a stable $2.7B in Q2 2020.  

HALLIBURTON:  With a big exposure to the US land market, HAL suffers if oil settles at $32 in Q2 2020. HAL’s global OFS sales fall from $4.8B in Q4 2019 to $2.8B in Q2 2020.  

ARTIFICIAL LIFT:  You think drilling & completion are the only ones hurt by $32 oil?  Think again. If oil settles at $32 in Q2 2020, global artificial lift sales fall rapidly from $2.8B in Q4 2019 to $2.1B in Q2 2020.  

GEOPHYSICAL:  Do we stop exploring when oil hits $32?  Some, but this is certainly not Armageddon. If oil settles at $32 in Q2 2020, global geophysical sales fall from $2.2B in Q4 2019 to $1.8B in Q2 2020.  

CONTRACT COMPRESSION:  Recession? What recession? If oil settles at $32 in Q2 2020, the global contract compression market barely budges from $0.9B in Q4 2019 to $0.8B in Q2 2020.  

To learn more about our OIW, and to work scenarios of your own, visit spearsresearch.com/workbook/oilfield-investor-workbook