"Oil services, imparticular, should have a multier up-cycle ahead of it with strong oil prices and plenty of prospects to drill out there. So the service side looks plenty attractive assuming we don't have a market freeze up like we did in '08," says Adkins.
Adkins believes it's critical that prices stay above $70 a barrel. But he thinks they will for two reasons. Reason number one is that supply and demand fundamentals are better than any time we've seen in the last 15 years. "Secondly, we think the solutions to the global debt situation will involve the printing of money. Whenever you start printing currency, whatever currency it is, commodities tend to go up relative to those currencies."
His best advice is this. "It's really pretty simple. Borrowing some type of financial cease up, which is driven by Europe or wherever, pull that off the table. Oil looks very bullish and this is an oil centric area. So it should be pretty darn good for the Midland area. "
Adkins also expects the hydraulic fracturing business will be extremely robust over the next five to ten years since demand for fracking and fracking services continue to ramp up at twice the pace of drilling.
As for natural gas, Adkins expects it will be relatively depressed for the next few years since the supply is greater than the demand.
He also says alternative forms of energy, like wind energy, are not the best place to put your money right now since the global markets rely far more on oil and natural gas. He expects it will be this way for quite some time.
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