Oil prices will likely fall before they head higher. But if we wait until the cycle reaches that point, we'll likely miss the opportunity created by this complex bottom.
a recovery phase is clearly underway. It’s on par with a similar cycle from 1997 to 2001, while other cycles rebounded at around the 200th day. We can’t expect substantial returns when the U.S. rig count bottoms. If the rigs aren’t active, oilfield-services companies aren’t going to have as much work. At that point, companies simply hope to survive and win enough business to keep their fracking crews employed. In the near term, I believe the near-record oil-storage numbers, increased drilling in the Permian Basin, and OPEC’s inability to maintain production cuts will drive an oversupply problem That means oil prices will likely fall before they head higher. But if we wait until the cycle reaches that point, we’ll likely miss the opportunity created by this complex bottom. The oilfield-services industry has been oversold and underappreciated.
And if you’re willing to be a contrarian investor, you can get in ahead of the masses... And your potential upside will be tremendous in the coming supercycle.
Flavious Smith is the former Chief Oil and Gas Officer and Executive Vice President of Forestar Group (FOR), a publicly traded company where he grew the value of the oil and gas division from $30 million to $312 million in seven years. He recently published a book called Oil $500: Why the Next Oil Supercycle Is Closer Than You Think . In it, he outlined all the reasons why oil is poised to go to $500... And tells readers how to invest your money to take advantage of the next supercycle. If you are in your 50s or older, this may be the last oil supercycle you’ll see in your lifetime. Click here to learn how you can get your copy of Oil $500 to read immediately .
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