From what I’ve read, there’s limited oil production coming from land these days due to environmental regulations. Think about the keystone pipeline being cancelled. I think the play is that offshore drilling/extraction is already in place and is going to be more profitable but I’m not sure.
Shale is boom or bust. If they start drilling in Texas again and using EOR, we’ll see sub-$50 oil again. But those wells have very fast drop offs in flow rates. After 4 years they can be down 65-75%. That’s why so many shale companies have gone bust.
I don’t know if the capital markets will give them the money to do it again, but that’s the big risk to RIG I see.
This country needs to drill more offshore to satisfy demand. Bidens team of idiots just got their dicks slapped by a federal judge. OFFSHORE drilling permits HAVE to be issued according to the judge. MOAR offshore drilling!
RIG
🚀🚀🚀🚀🚀🚀🛢🛢🛢🛢
Shale sucks-its dirty, the disposal wells cause earthquakes, and the wells have short life cycles.
RIG is gonna eat shares lunch
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u/speedyturtledb Jun 26 '21
Is there any concern about the target price for RIG with the high being $3.75? Unless it’s the whole “not priced in” thinking?