November is proving to be a good month for offshore drilling investors. All offshore drilling stocks were trading in positive territory on November 28, 2016, with their prices improving since the start of the month.
Stock performance of offshore drillers
Offshore drillers’ (XLE) monthly stock performance, as of November 28, 2016, was as follows:
As we’ve seen, offshore driller stocks have risen significantly in November. It’s important to see whether the underlying fundamentals of the industry have changed. In this series, we’ll analyze indicators that you can track to get a sense of the offshore industry’s direction.
We’ll look at how the slump in oil prices affected E&P (exploration and production) companies’ capex (capital expenditure) and what it means for the offshore drilling industry. We’ll analyze drilling permits for the Gulf of Mexico, and end the series by looking at offshore rigs’ utilization rates and analyst recommendations for offshore drilling companies.