Re: ExMob merger makes oil services look bad to Wall Street

[James Love <love@cptech.org>]

This is, I take it, an indication that in the short run, the merging
parties would be able to exert some monopsony power in some input
markets?  Jamie


Etchison, Michael wrote:
> 
> [without permission, from the _Street Life_ email list from Fortune.]
>         OIL STOCKS.... Everyone got all moony-eyed over the Exxon/Mobil deal,
> but it threw a serious wrench into the rest of the oil sector. Now, oil
> service guys will have fewer customers and less pricing control. That's
> seems like a good reason for--ta-da!--Lehman to downgrade the whole
> darned sector.  And they did. Shall I list them? Diamond Offshore Drill,
> Schlumberger, Global Marine, Baker Hughes Inc., Carbo Ceramics,
> Transocean Offshore and UTI Energy, to name a few. Just like the rest of
> the gang, Schlumberger didn't like it.  Down $1 7/16, to $41 5/8. Of
> course, it didn't help that oil prices are still scraping the bottom at
> $10.38 per barrel. My advice: get outta Texas!
> 
> Michael E. Etchison
> etchison@puc.texas.gov
> [opinions mine, not the PUCT's]

-- 
James Love, Consumer Project on Technology
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