What do you think about China's oil services companies?

spider348 answered one year ago …

A couple of things come to mind - Be prepared for gut wrenching overnight gaps if buying for a longer term. Foreign stocks (ADR's and ADS's) can be very gappy at the open because of the overnight (foreign market) activity. Both of these stocks frequently demonstrate sizable multiple dollar opening gaps which you will have to sit through.
China does not have the environmental restrictions we have in the US when it comes to drilling. China's oil consumption (I have heard - forget the source) could increase by as much as 150% by 2020. However China is geographically closer and has good political relations with the major oil producing regions such as Russia, Saudi, Iran and politically Venezuela. If price comes down and stays down my bet is China will put more interest in importing oil because it is expensive and time consuming to drill. So I think they will continue to drill and expand services but to what degree will be dependent on oil prices.