Enterprise Oilfield Group, Inc. (TSX: E): Are Oil Prices on the Verge of Rapid Recovery?
A sharp reduction in spending by oil producers points to a quick recovery for oil prices once the economic downturn begins to alleviate. Notably, cash-strapped producers have cut budgets faster and deeper than in past downturns. This lack of investment is already speeding up the rate of decline in older fields, and delaying the start of new production. Service companies, such as Enterprise Oilfield Group, see a possible repeat of the last four years. During this period, oil prices rose to record levels as demand grew faster than new supplies, an imbalance that some believe was caused by a lack…