Update
January 10, 2011: see additional comments suggesting KEG is a fracking company. And now this link from 2011: Key Energy buys fracking companies for $300 million
Key Energy Services, Inc. has reached a definitive agreement to acquire Edge Oilfield Services, L.L.C. and Summit Oilfield Services, L.L.C. for a consideration of approximately $300 million.Same day: See comment re: KEG -- whether or not it's a fracking company.
Edge primarily rents frac stack equipment used to support hydraulic fracturing operations and the associated flow back of frac fluids, proppants, oil and natural gas. It also provides well testing services, rental equipment such as pumps and power swivels, and oilfield fishing services. Following the close, Edge's results will be reflected within Key's existing Fishing & Rental Services line of business, which is included in its U.S. reportable segment.
Here's the link to Cramer's site:
The Houston-based company is what’s known as a well servicing contractor, meaning it does pretty much everything needed to keep oil wells working, including maintenance or repair. With 787 rigs in operation, It’s actually the largest operator of onshore well service rigs in the U.S.So, it appears Cramer was being a bit ingenuous -- KEG might not be a "fracking company," per se, but rather "engaged in hydraulic fracking."
Cramer likes Key Energy Services because it’s engaged in hydraulic fracking, which is the controversial drilling technique performed in oil-rich shales. Fracking is a crucial part of horizontal drilling, a method that’s more complicated than traditional drilling. The oil wells created by horizontal drilling are up to five times more service intensive than conventional wells and that means more business for Key Energy Services.
Pending further corporate comments, I will remove KEG as one of the fracking companies in the Bakken, but leave it at the post with an asterisk and an explanation.
Original Post
Segment on CNBC - $200 oil if Iran shuts the strait
- 15 million bopd through the strait
- scenario to get to $150 to $200/bbl
- but it won't last long
- response within 2 weeks
- would response cause price to go up?
- talking head says once shooting starts (as part of the NATO response) the price would start to come down
- assuming no major conflict; short term price, next 3 - 6 months --> the EU is going to embargo imports from Iran; Saudi will make that up; but bullish for the markets --> less spare capacity --> that takes us up to $125; but could get to $150
Later: Cramer recommends Key Energy Services (KEG), a fracking company. Cramer says KEG is moving to the Bakken; I haven't verified that. I will add it to my list of fracking companies until I sort it out. [Update: yes, indeed, Frac Tech may be in the Bakken -- see this link which I posted some time ago.]
