Trump's executive orders deregulating many of the hurdles that have stymied exploration over the past 8 years including the opening of some federal lands that have been restricted, both onshore and offshore has given new hope for big oil and gas producers. Independent oil companies looking to capitalize on Trump's de-regulation initiatives are taking the opportunity to flex their own not so dormant muscles to capitalize on potential momentum in the oil drilling and exploration sector.
Three companies appear to benefit from this play either through services or through opportunities from de-regulation of previously restricted lands. Independence Contact Drilling Inc. (NYSE: ICD) a land-based contract drilling services for oil and natural gas producers in the United State, Patterson-UTI Energy Inc. (NASDAQ: PTEN) an oilfield services company that primarily owns and operates in the United States one of the largest fleets of land-based drilling rigs and a large fleet of pressure pumping equipment and Petro River Oil (OTC: OTCPK:PTRC) a New York based independent oil company with assets in Oklahoma, California and Western Europe most recently issued an approved Environmental Assessment from the Bureau of Indian Affairs (BIA), a final hurdle to drilling permits in Osage County, Oklahoma that the company has been developing for at least two years. Given Petro River's current valuation, success on its Oklahoma drilling program can present significant upside for investors.
Along with the Trump de-regulation initiatives, U.S. crude production recovery and how competitive domestic exploration and production becomes seems to come from claims of newer exploration technology, cost savings from improvements and innovation while targeting vast oil reserves mostly through shale play economics.
RS Energy Group, a firm that provides technically focused energy research, analysis and evaluation stated that approximately $2.7 trillion was spent on unconventional and shale wells from 2000-2015 in the United States. While these numbers show a great confidence in the shale play, data from a majority of 25,990 shale wells shows break-even at GREATER than $60+ oil prices. Petro River, on the other hand, taking a pure conventional approach to its drilling program in Oklahoma shows break-even at lower than $30 oil prices.
At today's oil prices, it is apparent that economics could play a larger role in oil and gas exploration then politics. OPEC and other non-OPEC nations and their control on production and pricing will continue to pressure US oil companies to strike deals with their contractors and find ways of operating more efficiently at lower prices either way these smaller independents are bound to benefit from this new dynamic.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: OTC Stock Review and Atlanta Capital Partners, LLC has been compensated in the past, and expects to be compensated in the future, by Petro River Oil Corp. for investor relations services. OTC Stock Review and Atlanta Capital Partners, LLC reserves the right to be compensated for investor relations services by companies mentioned in this article. You are encouraged to read our complete disclaimer here www.otcstockreview.com/...