Spears: Drilling industry no longer cyclic as it adheres to capital discipline

Spending in the onshore drilling market has been low for much of the past decade, as companies have prioritized increasing efficiencies and returning cash to shareholders in the wake of multiple and unpredictable oil price downturns. Even as recent conflicts in Iran and Ukraine have led to surges in oil prices, that may not necessarily result in increased drilling activity, says Richard Spears of Spears & Associates. In this video interview with DC taken from IADC Drilling Onshore Conference in Houston on 14 May, Mr Spears spoke about why he thinks the oil and gas drilling industry is no longer cyclic, and what that means for drillers moving forward. He also talked about the potential for a sustained oil price of $150/bbl and how pricing at that level would disrupt the industry.