Many investors are arguing that right now may not be the best time to invest in offshore oil drilling stocks, because there is currently a federal ban on offshore drilling. Though it was recently reversed by a U.S. District Court, the federal government plans to appeal the decision. Stock prices of offshore oil drilling companies continue to fluctuate in the wake of the British Petroleum Gulf of Mexico oil spill.
Of course, for a wise investor, this is seen as an opportunity to snatch up cheap oil drilling stocks.
And don’t forget, there are many onshore oil drilling companies and these are unaffected by the offshore drilling ban. The oil spill disaster has caused the industry’s focus to shift to drilling on land. The onshore oilfield service companies expect to see prices and demand surge. Some analysts believe that this demand will continue even if the offshore oil drilling moratorium is permanently lifted.
Parker Drilling, based in Houston, TX, provides both land and offshore contract drilling services. Its stock is currently selling at $3.95 per share. Patterson-UTI Energy, Inc. is another onshore contract drilling service company, trading at $12.88 per share. Occidental Petroleum Corp. recently doubled its capacity estimate for a discovery located near Bakersfield, CA. The company believes that the oil field holds 500 million barrels of oil, a current value of over $34 billion. Occidental Petroleum is the fourth largest oil and gas producer in the U.S. and its stock is currently priced at $77.15 per share.
Stocks in companies that assist with well completion and hydraulic fracturing will also benefit from increased onshore drilling. Companies like Lufkin Industries, T-3 Energy Services, Superior Well Services, and Basic Energy Services stand to do well in this environment. Lufkin achieved year-high share prices several days after the BP spill occurred.
While the future of offshore drilling remains uncertain, signs are pointing to stock in onshore drilling companies as a smart investment. Some of these companies, like Occidental Petroleum, are taking advantage of the offshore drilling moratorium to increase their project investments. Individuals interested in investing in the oil industry should examine publicly traded onshore drilling and related service companies.
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List Of Oil Drilling Stocks”
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