On Sept. 6, the number of operating drilling rigs in the United States fell below 900 for the first time since 2017. Month-after-month declines in rig count have weakened the stock prices of pure-play drilling companies. Although they're nearing record-low levels, let's not throw the baby out with the bathwater.
Long term investors should first choose a sector they are interested in and then focus on individual companies that cultivate shareholder value. Let's look at how four parts of the upstream oil and gas industry -- pure-play drillers, oilfield services, exploration and production, and the integrated majors -- will likely react to a dropping rig count and whether there are energy stocks within each section that are suited for a long term investment.
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