The global rig count, which includes both offshore and land-based rigs, is at an all time high as all the regions of the world participate in the drilling boom. Contrary to popular belief, most rigs are owned by contract drillers rather than the large consolidated oil companies, which opens other investment opportunities. While the big oils are still a good bet, smaller contract firms can be an excellent value.
Following is a fascinating story that’s truly the lowdown–more than 7,000 feet down to be exact–on cutting edge subsea drilling platform technology.
In order to continue meeting production demands, oil companies are forced to drill deepwater wells which can lie a mile or more below the ocean’s surface. Deepwater drilling is extremely expensive and poses its own unique set of technical challenges, but there are several companies up to the task. With oil prices continuing to rise, deepwater drilling can be a very profitable endeavour for both drilling companies and those who supply the equipment.
The big energy news last week was a report issued by Goldman Sachs (NYSE: GS) discussing the possibility of a spike in crude oil prices–all the way up to the stratospheric $80 to $105 per barrel level. With prices already in the nosebleed section, above 57 currently, is this a credible possibility?
The U.S. imports 10 million barrels of oil a day, with Europe and Japan close behind. If that import dependence strikes you as all bad news, think again. The booming oil trade offers investors a shot at earning dividend yields as high as 25 to 30 percent annually on oil tanker shipping companies.
During the summer of 2003, outspoken Oklahoma oilman T. Boone Pickens made a speech in New York in which he predicted the price of a barrel of crude oil would shortly surge to an all-time high. Specifically, he predicted the north side of $50 per barrel.
