Energy Industry: Staying Strong This Summer
I’m sure your probably questioning the title of this post considering this summer has been a bit of a rough ride in the financial world. But let’s look at this positively. Despite this rough patch, the energy industry has kept pretty strong momentum, as well as earnings, though it all. Investopedia has the details.
Energy Oil prices are volatile as investors try to digest the ongoing troubles in Europe and the weakening economy in the U.S. and interpret their impact onglobal growth and global energy demand. Nevertheless, energy companies large and small continue to see very profitable price realizations and are pushing ahead with aggressive production expansion plans.
As investors try to forecast the near-term trends in energy prices, as well as the possibility of regulatory changes to drilling practices, stock performance has been all over the map. The sector as a whole has been fairly weak (down almost 10%), but stocks like Petrohawk (NYSE:HK), Cabot (NYSE:COG) and Chesapeake Energy (NYSE:CHK) have done quite well on news (or expectation) of buyouts and responsible production growth strategies. (Related: Unearth Profits In Oil Exploration And Production)
Energy Services As oil and gas companies have looked to hold leases with production and expand their revenue base, energy service companies have seen a jump in demand for their services. This has fueled a jump not only in revenue and profits, but in the companies’ order books as well. While companies like National Oilwell (NYSE:NOV) and Cameron (NYSE:CAM) look for major orders from large offshore energy projects, more traditional service providers like Schlumberger (NYSE:SLB) and Haliburton (NYSE:HAL) are looking to couple a recovery in international markets with very strong North American demand.
The energy industry has maintained its strength in comparison to other areas in the market. Let’s hope that the energy industry can rally its way back up to their high numbers. The companies have the potential to get there, so stay bullish about energy stocks.
Quotes taken from report by Investopedia, Read the entire article here.
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