For years, the oil industry has been a lucrative one. It’s a trillion-dollar industry, and although it has been mired in controversy for a variety of reasons, oil is a necessary aspect of our everyday lives as humans. And, being involved in the industry as closely as I am, I’m always on the lookout for new information and the latest trends.
If you’re even remotely interested in oil, here are a few things that investors should know about the oil industry.
There’s a slowdown on drilling
According to the CEO of National Oilwell Varco (NOV), Clay Williams, drilling in North America has slowed down substantially. This has directly resulted in a decrease in price on the tools specifically designed for drilling for oil. As expected, a decrease in prices means a decrease in profitability for oilfield tool manufacturers. The sector will likely see an increase once drilling goes back on the climb, but until then, this is an area that you’ll want to keep your eyes on.
Offshore drill pipes are in
Pipe demand has been predominantly focused on land in recent memory. However, there seems to be a growing trend in moving offshore. Williams claims that NOV has seen a sizable decrease in sales in drill pipe for land-focused drillers. And instead, the company has seen an uptick of potential customers and sales leads coming from offshore sites. This is very telling; it shows that more and more drillers are looking to go offshore in order to obtain oil.
The Eastern Hemisphere is on the rise
According to Williams, the Eastern Hemisphere was off to an incredibly slow start. However, the hemisphere is turning things around and is set for a great year. What’s more, the Eastern Hemisphere’s rise is making up for North America’s lackluster growth. More specifically, India and the Middle East are eager for drilling equipment.
Regardless of your individual sector in the oil industry, it’s an exciting time to be involved. I’ll keep you posted with more information on trends within the market.