Analysts are highlighting that the post-war outlook for oilfield services is bright. But this good news comes at great cost.
In my newest post at Foundations of Energy, I write about the improving prospects for oilfield service companies.
Damaged infrastructure will be repaired or replaced.
Shut-in production will be reactivated.
Existing production will be ramped up to capture more elevated prices.
Reading the reports, I kept thinking about Henry Hazlitt’s Economics in One Lesson, a book that argues the economic gains from acute disruptions often mask wider losses elsewhere.
It’s true that the prospects of oil producers and oilfield service companies have improved materially over the past few weeks.
But the economic loss in the rest of the economy is profound.
And we’re not just paying the price today. We’ll be paying it for a long time into the future.
Read the full analysis at Foundations of Energy
