Source: Houston Chronicle | Jennifer Hiller | April 30, 2017
The U.S. oil and gas industry started the year by rushing back into the field to take advantage of a bump in oil prices.
Did they run too fast?
It’s a question hovering over the industry as service companies report first-quarter earnings results.
Since the start of the year, about 200 drilling rigs have gone back to work in the U.S. The 870 drilling rigs active in oil and gas fields last week is up from the paltry 420 rigs that were at work more than a year ago.
Jason Wangler of Wunderlich Securities said there’s no question that 2017 is a better year in oil and gas, but analysts want to know how much service companies are able to charge, and what they are hearing from their clients who explore and produce oil.
“Are they seeing any changes to the spending levels from their clients?” Wangler asked.
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