Contract drillers aren’t in the business of exploring for or producing oil and natural gas, nor are their earnings and revenues directly dependent on the vagaries of global commodity markets. But since the contract drilling business is sensitive to spending on oil and gas exploration and development, the industry’s up-cycles and down-cycles are driven by the same factors that influence conditions in the market for oil-field services.
Contract drillers own fleets of drilling rigs–equipment used to sink oil and gas wells–and lease those units to exploration and production companies under term contracts that guarantee a daily fee.
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In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Jan. 29, 2021
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