The companies that are doing it are good solid companies, if your fund has been out of energy for two years, these are the stocks you look at first.

Mike Breard

The big question of course is oil prices, the main thing people should look at when these companies report second-quarter earnings is if they're going to add wells or do something to increase production in the second half of the year and in 2017.

Under the conditions that existed then, you’d rather own 90 percent of a company with a stronger balance sheet than 100 percent of one with a slightly worse balance sheet.

It's like if you take a coke bottle and shake it up and all the drink fizzles up. But if you don't shake it up, you end up getting more to drink - choking has the same effect.

It's very rare to have spending decline two years in a row, any budget you see published now is going to be much lower than last year.

If you cut your budget 60 percent, you may drill 40 percent fewer wells and your production is going to drop a considerable amount.

I don't see how anybody in their right mind thought that Saudi Arabia were going to cut production, i guess some people were holding out hope.

They don't have a track record, you feel better buying something you know when you're trying to catch a falling knife.