Is the Oil Boom Over?

It’s difficult to predict the end of the boom, or even put a date on when it began. Obviously, the best bargains were available in 1999, when oil was cheap and the investing world was enamored with technology. From 1999 to 2004, the industry was recovering from extremely bad times. The prevailing opinion was that oil prices could return to $20 a barrel any quarter.

Therefore, barring global recession, the oil boom will continue — albeit with some violent bumps along the way. The oil-services sector is almost certain to remain very active, as big oil companies make their drilling plans based on $25-per-barrel oil — a price that would occur only with a global financial collapse.

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