When the poet John Donne observed that "no man is an island", was he referring to the impact of world events on tricone prices? We'll never know for sure, but we DO know that oil and tricone prices, like anything in a free market economy, do not exist in a vacuum.
Generally speaking, greater demand leads to higher oil prices, sparking more drilling activity. This increases the need for drilling supplies such as tricone drill bits, and likely increases their cost as well.
There are several factors that impact oil and tricone demand and prices. One of the most significant is a crisis in the form of war, economic upheaval or disaster.
Not all wars are created equal. A conflict in Belgium or Paraguay is unlikely to affect tricone demand. Shift the scene to a major oil-producing country, however, and it's a different story. Yet the influence of war … Read More