This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

In the Energy Decade, Oil Companies Party Like It’s 1979

NEW YORK (TheStreet) -- The best economic seer of the last decade turned out to be T. Boone Pickens.

Back in 2008 Pickens, an oilpatch fixture since the 1970s, began pushing the idea that natural gas could become a "bridge" to a renewable energy future, and that the U.S. could become independent of foreign oil.

Five years later it's another earnings season in the oilpatch and all seems to be going according to plan. Independent exploration companies are prospering as never before.

Read More: 4 Stocks Warren Buffett Is Selling

Sterne Agee is raising its price target on Whiting Petroleum (WLL), the largest producer in North Dakota's Bakken formation. Energen (EGN), which is now emphasizing the Permian Basin of Texas, delivered strong results, Sterne Agee said. Ultra Petroleum (UPL) will do better as pipeline infrastructure reaches its production in Wyoming, the analyst says. Domestic production from Occidental Petroleum (OXY) was near the top line of Sterne Agee's estimates. Sterne Agee is also keeping its buy rating on Southwestern Energy (SWN), which is turning its gains in Pennsylvania's Marcellus Shale into new exploration in Colorado.

It's not just the oil producers that are raking in money. Oil services companies like Schlumberger (SLB), Baker Hughes (BHI) and Superior Energy Services (SPN) are all up over 20%. Halliburton (HAL) is up over 35%.

If you're commuting to work in Houston, Dallas or Oklahoma City and worrying about traffic, or if you're looking for work in Williston, N.D. and finding it impossible to get a place to sleep unless you have a mobile home hitched to your pick-up, you know this. This is the best decade for U.S. energy companies, and thus for the whole center of the country from Texas to the Dakotas, since the 1970s.

While most of Wall Street's attention is focused on tech companies like Twitter (TWTR) and Facebook (FB), on futuristic manufacturing companies like 3D Systems (DDD) and Stratasys (SSYS), or on the minutiae of politics and economic policy, the reason for the present recovery can be explained in one word: energy.

Read More: Argentina Debt Looks Bad Now but May End in a Gusher

Oil production has doubled in the last three years in both North Dakota's Bakken shale and Texas' Eagle Ford shale, to nearly 500,000 barrels/day each. Natural gas production in the Appalachians' Marcellus Shale has more than tripled in the last four years, to over 6 billion cubic/feet per day, according to the Energy Information Agency (EIA). 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.27 -0.33%
FB $79.05 0.30%
GOOG $540.78 0.00%
TSLA $238.10 3.30%
YHOO $42.04 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs