Compton's Chill Should Pass

This column was originally published on RealMoney on June 30 at 9:09 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

With energy investors already on pins and needles, Compton Petroleum(CMZ Quote) frayed even more nerves this week.

Compton, a small exploration and production company with operations in the U.S. and Canadian Rockies, indicated on Wednesday that they would reduce their capital spending budget by $110 million. The company cited a combination of increased oilfield service costs, a decrease in productivity and a decline in natural gas prices.

Some investors -- especially those bearish on the natural gas markets -- suggested Compton's news could be the beginning of a trend toward reduced activity by exploration and production companies and, as a result, a decline in demand for drilling rigs and other oil field services. ...