Compression Misconception
There's seems to be a general misconception about the compression leasing business and how it works. In particular people don't seem to understand how significantly it differs from the rest of the energy services industry.
First, the major demand driver for compression leasing firms is the volume of natural gas being transported, not the price of natural gas, and certainly not the price of oil. Compressors are a piece of capital equipment similar in some ways to a toll bridge. Like the toll bridge, the owner of the asset doesn't typically care whether