Investing In Oil Companies In The Age Of Renewables
Investing in oil companies is investing in a high demand product that currently helps the world turn efficiently. Although there are lots of renewable energy sources and more popping up everyday, oil isn’t going anywhere, anytime soon.
Petroleum not only runs most of the cars on the planet but it also is the key player in many different industries such as the production of plastics. Another sector of the oil industry, natural gas, is used for warming our homes, creating our chemical fertilizers, and also can be turned into electricity and diesel fuels. In 2016 oil stocks continued to be lower but by December 2016 some relief was on the horizon. Multiple OPEC agreements that limited oil production pushed oil prices over the $50 barrel.
There are many good ways for investing in oil companies in 2017, but some companies are predicted to do better than others. The companies listed below have been collecting assets in order to create higher incomes this year and have survived up until now through efficiency measures that have debilitated others. It is predicted that these stocks have a great chance to turn profits on oil investments throughout the year.
The lowering of oil prices hit offshore drillers hard but things are looking up for Atwood Oceanics Inc. (ATW). They work to contract ocean rigs which isn’t a very popular option when oil costs $40 per barrel and below. Rising oil prices has allowed Atwood Oceanics, which drills all over the world, to put the offshore rigs to use for the oil companies. This change has given a good rise to their stock pricing and stocks are predicted to soar in 2017.
Another oil company stock to keep an eye on is Comstock Resources Inc. Comstock Resources (CRK) has it’s home in Frisco, Texas. Quarterly reports for the company has shown increased revenues and it has continued to find sustenance with a 50-day moving average. CRK joined forces with USG Properties Haynesville in January of this year giving it an access to over 3300 more acres to put 20 oil wells on. The merger has given an already strong stock option more room to grow.
When investing in oil companies keep an eye on the pricing of oil and don’t forget to do research on each company that you hope to invest in. Learning the situations that affect oil prices will help investors to make wise choices on which stocks to purchase and hold on to.