Oil Energy Thread (oih)

[madrose1]

Playing the field for oil profits-Barron's Online
From the "Weekday Trader" section: The storm that has blown energy prices back from their recent peak has created a new opportunity in the oil-field-services sector. Crude oil prices have tumbled about 20% from their mid-July high to near $62 per barrel. The result scared away some speculative energy investors, but the earnings cycle has not ended for large services-and-drilling companies with long-term, deepwater projects that continue even if oil prices fall below $50. Among them are driller Transocean (RIG), whose shares have fallen 8% since mid-July, and big equipment-and-services provider Weatherford International (WFT), whose stock has fallen more than 17% in that period. These companies are being paid by major international explorers to get oil and gas out of the ground. And those projects are budgeted to be profitable with oil prices well below the six-month $65 average projected by the futures market. Of course, if oil prices fall more, the prices of these stocks could feel more pain. But with the world still begging for more oil, large oil-field-services names with good prospects and valuations could prove to be the valuable seashell the oil-price storm left on the beach. :theflyonthewall