September 23, 2016 – The Street
Top 4 Oil Drilling Stocks for an Energy Recovery
By: James Passeri
Patience is not necessarily a virtue when it comes to oil markets.
Falling crude prices over the past two years -- which are down almost 60% since mid-2014 highs -- have made the geographical concentration of U.S. drilling activity incredibly narrow. And some familiar names have turned off their rigs waiting for oil to hit $60 a barrel or higher before again getting their hands dirty.
Others are still flooding the market, hoping to be the first able to tap paydirt when it once again becomes lucrative in the U.S. These are the companies to bet on if you're an oil bull.
"There's a ton of producers out there that continue to press hard on the gas pedal despite the fact that a lot of their production is uneconomic," Real Money's Dan Dicker said in a phone interview.
After all, half of all onshore rigs in the continental U.S. are based in just 20 counties, RBN Energy analyst Sheetal Nasta said in a recent investment note.
"In effect, this also means a lot of the new production growth will come primarily from these same 20 counties, with the potential for all sorts of implications for infrastructure and regional price relationships," Nasta added.
So, who stands to gain? The producers best poised are those still operating and which can best respond to price adjustments. If lightning strikes and oil hits, say, $60, they're already way down the production curve when it comes to drilled-but-uncompleted wells, or what the industry calls "DUCs."…
Read the full story here: https://www.thestreet.com/story/13750645/1/top-4-oil-drilling-stocks-for-an-energy-recovery.html
