dsrtwriter

Insiders See Value in Slippery Oil Patch

While it hurts to hold RIG and NOV and see such a drop,with their excellent fundamentals,the only question, as you are discussing, is when to average down.Nobody knows the bottom when shares are being dumped across the board as these hedge funds liquidate,but there is nothing wrong with nibbling away over time.

No matter what happens to the price of oil over the next year or so, these companies have long term contracts, many made when oil was high, at nice rates. Those contracts will hold,because one day, maybe in a year,demand will catch up.The oil companies take a longer view of drilling and exploration, and all indicators are that drilling worldwide will increase.

The reality is that it is going to be a long time before the majority of our transportation needs will be met by non-fossil fuel vehicles. Even with improvements in gas mileage, there are going to be many more vehicles on the roads of India and China.