The high cost of doing business

Parker Drilling Co. chairman and CEO Robert Parker Jr. says that when oil and gas prices rose in 2005 and in the first half of 2006, drillers raised prices because the market allowed for it. Some oil and gas producers squeezed by such high costs have since pulled back to some extent. But Parker, speaking on a panel today at CERAWeek’s natural gas day, says a pullback won’t necessarily bring those costs down quickly.
He says “the rest of the world is on fire right now” and oil service providers can move out of the United States if margins here aren’t what they want them to be. So while land rig rates are starting to come down, Parker says some drillers have had a boon:
“We’ve been running flat-out for two years. Some of this has been a blessing for the industry.”

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