The European oil-field services sector’s market value has roughly halved over the past two years, pummeled by the tumbling oil price and sharp cut-backs to investment by oil and gas companies. The prospects for near-term improvement look pretty bleak. That isn’t just related to the oil price, with Brent crude on Wednesday dropping below $35 a barrel , its lowest since 2004. With tensions high between Saudi Arabia and Iran, any rally would certainly boost services stocks but would likely leave other issues unaddressed. It is hard to see oil-field services companies, especially Europe’s offshore specialists like Subsea 7 SUBCY -4.88 % or Saipem , SPM -3.81 % mounting a sustainable recovery while their biggest customers remain in a state of dysfunction. Oil and gas majors can’t cover their investment spending and dividends with operating cash flows at $60 a barrel, let alone $35. […]