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Why Did Energy Services Stocks Plunge So Deeply?

Add this little bit to the outlook for service companies. In addition to more rigs laying down, most indies will be demanding downward revisions in service contracts at renewal time. Service companies asked for, and got, hefty price increases when demand for their rigs and services were tight -- double year-on-year for some contracts during the run-up. Now that demand is down with prices, you know that e&p companies will be asking for some of that back.