Obama's Aggressive Oil Plan Will Have Long-Term Positive Implications for Oil & Gas Companies
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President Obama took a page from Sarah Palin today, with a promise to 'drill baby drill' in an attempt to end the country's dependence on foreign oil. The President proposed opening off-shore drilling along the Atlantic coastline, the Gulf of Mexico and the northern coast of Alaska for the first time to recover oil and natural gas.
The exploration for oil would cover 167 million acres of ocean along the East Coast from the northern tip of Delaware to the central coast of Florida, while the coast line from New Jersey upward would remain closed along with the Pacific Coast from Mexico to Canada.
The news has positive implications for a number of Oil & Gas companies.
First, oil & gas equipment and services companies will likely see a big boost from the increased exploration activity. These companies provide evaluation, well construction, hydrocarbons location services and manage geological data, among others things . Leaders in the space include Halliburton (NYSE: HAL), Weatherford (NYSE: WFT), Schlumberger Limited (NYSE: SLB), National Oilwell Varco (NYSE: NOV) and Baker Hughes (NYSE: BHI).
Next, oil and gas exploration and production companies will be given the green light to find and develop new oil and gas discoveries, which could mean increased proven reserves and profits down the road. Some leaders in this space include Occidental Petroleum (NYSE: OXY), Devon Energy (NYSE: DVN), Southwestern Energy Co. (NYSE: SWN), Anadarko Petroleum (NYSE: APC), EOG Resources (NYSE: EOG), Newfield Exploration (NYSE: NFX), and Ultra Petroleum Corp. (NYSE: UPL).
In addition, oil drillers will see a benefit from all the increased drilling activity. Some leaders in the drilling space include Transocean (NYSE: RIG), Diamond Offshore Drilling (NYSE: DO), Noble Corporation (NYSE: NE), Rowan Companies (NYSE: RDC), Pride International (NYSE: PDE) and Atwood Oceanics (NYSE: ATW).
Other companies like Cal Dive International Inc (NYSE: DVR), which provides subsea construction and underwater diving services, and Gulfmark Offshore, Inc. (NYSE: GLF), which provides international offshore marine services to offshore exploration companies, will also benefit.
The exploration for oil would cover 167 million acres of ocean along the East Coast from the northern tip of Delaware to the central coast of Florida, while the coast line from New Jersey upward would remain closed along with the Pacific Coast from Mexico to Canada.
The news has positive implications for a number of Oil & Gas companies.
First, oil & gas equipment and services companies will likely see a big boost from the increased exploration activity. These companies provide evaluation, well construction, hydrocarbons location services and manage geological data, among others things . Leaders in the space include Halliburton (NYSE: HAL), Weatherford (NYSE: WFT), Schlumberger Limited (NYSE: SLB), National Oilwell Varco (NYSE: NOV) and Baker Hughes (NYSE: BHI).
Next, oil and gas exploration and production companies will be given the green light to find and develop new oil and gas discoveries, which could mean increased proven reserves and profits down the road. Some leaders in this space include Occidental Petroleum (NYSE: OXY), Devon Energy (NYSE: DVN), Southwestern Energy Co. (NYSE: SWN), Anadarko Petroleum (NYSE: APC), EOG Resources (NYSE: EOG), Newfield Exploration (NYSE: NFX), and Ultra Petroleum Corp. (NYSE: UPL).
In addition, oil drillers will see a benefit from all the increased drilling activity. Some leaders in the drilling space include Transocean (NYSE: RIG), Diamond Offshore Drilling (NYSE: DO), Noble Corporation (NYSE: NE), Rowan Companies (NYSE: RDC), Pride International (NYSE: PDE) and Atwood Oceanics (NYSE: ATW).
Other companies like Cal Dive International Inc (NYSE: DVR), which provides subsea construction and underwater diving services, and Gulfmark Offshore, Inc. (NYSE: GLF), which provides international offshore marine services to offshore exploration companies, will also benefit.
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