Breitling Oil and Gas Morning Podcast #177 10-23-12

The US drilling boom seems to be taking a breather. The Baker Hughes rig count, at 1,837 the
week of Oct. 5, was down 11 units from the previous week and down 175 units from the same
week of 2011. Orders are down in many parts of the service and supply industry. So why the

Much of the answer relates to the approach of a pivotal general election.

For the oil and gas industry, President Barack Obama and former Massachusetts Gov. Mitt
Romney promise radically different conditions of investment. Obama’s administration approach
to oil and gas is persistent and clear: heavy regulation, guarded leasing of federal acreage, and
tax increases designed to suppress the production and use of oil and gas in favor of costlier

Oil and gas operators have powerful incentive to delay drilling investments until after the

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