Oilfield Services Cos. Rise On Oil, Drilling Boost

NEW YORK (AP) — Surging oil prices and signs that smaller private operators are returning to oil-based drilling programs sent shares of oilfield services companies climbing on Monday.

Oil prices rose to new highs for the year on a weak dollar and new data suggesting manufacturing in China has strengthened. Crude prices rose $1.53, or 2.3 percent, to $67.84 in afternoon trading. Over just the past month the price of oil has risen 25 percent.

The rally in oil prices have lured companies to return to drilling programs, according to Jefferies & Co. analyst Judson Bailey. Citing the Land Rig Newsletter, Bailey said that over the past two weeks the number of operators employing rigs increased by 25 to 268 active exploration and production companies.

"We see the willingness of companies to begin drilling again as the first positive in an otherwise dreadful market the last six months," Bailey said.

Bailey named Noble Corp., Ensco International Inc. and Rowan Companies Inc. as "top picks" based on potential for stock growth.

Shares of Noble increased $2.20, or 6.4 percent, to $36.58. Ensco International shares climbed $2.39, or 6.2 percent, to $41.28. Shares of Rowan rose $1.25, or 6.1 percent, to $21.70.