When the original estimates for capital expenditures for 2013 came out, it looked as though oil services might be the place to be. Based on the recent earnings release from Nabors Industries (NYSE: NBR ) , though, you might think otherwise. Here's the problem: Nabors is stuck between two emerging trends that could put a big squeeze on the rig company. Let's look at these two trends and Nabors' one hope for a better future.
Not everybody wins with greater efficiency
In�comparison with the rest of the oil and gas industry, horizontal drilling and hydraulic fracturing are still very young technologies. As exploration and production companies have�become�more�familiar�with the processes, they have also been able to eke out more�efficient�drilling. One major revolution that has brought along big savings is the concept of pad drilling, or drilling multiple wells within a couple of feet of each other to tap different parts of the oil formation below. Thanks to these gains in efficiency, companies have been able to drill more wells while using less drilling rigs.
Best Oil Service Stocks To Watch For 2014: Argent Mining Corp (AMG.V)
AM Gold Inc., an exploration stage company, engages in the exploration and development of mineral properties. It explores primarily for gold and copper ores. The company holds a 100% interest in the Pinaya gold-copper project comprising 35 mineral concessions covering approximately 19,200 hectares located in the southeast of the city of Lima, Peru; and an 80% interest in the Red Mountain gold project consisting of 52 mineral property claims covering approximately 3,600 hectares located in the central Yukon Territory, Canada. It also holds a 100% interest in 2 grassroots gold projects, the La Mamita property, which consists of a single concession and covering an area of approximately 1,000 hectares; and Minas Lucho property that comprises 4 mineral concessions covering an area of approximately 2,400 hectares, both located in Peru. The company was formerly known as Acero-Martin Exploration Inc. and changed its name to AM Gold Inc. in June 2010. AM Gold Inc. is based in Vanco uver, Canada.
Best Oil Service Stocks To Watch For 2014: Luminex Corporation(LMNX)
Luminex Corporation engages in the development, manufacture, and sale of proprietary biological testing technologies and products for the life sciences and diagnostic industries. It offers xMAP technology, an open architecture and multiplexing technology that allows simultaneous analysis of approximately 500 bioassays from a drop of fluid by reading biological tests on the surface of microscopic polystyrene beads called microspheres. The company?s xMAP technology is used in various segments of the life sciences industry, such as the fields of drug discovery and development, clinical diagnostics, genetic analysis, bio-defense, food safety, and biomedical research. It operates in two segments, Technology and Strategic Partnerships; and Assays and Related Products. The Technology and Strategic Partnerships segment provides Luminex LX 100/200 that integrates fluidics, optics, and digital signal processing; FLEXMAP 3D system for use as a general laboratory instrument; and MAGP IX system, a multiplexing analyzer for qualitative and quantitative analysis of proteins and nucleic acids. This segment also offers consumables comprising dyed polystyrene microspheres and sheath fluids. The Assays and Related Products segment develops and sells assays on xMAP technology for use on its installed base of systems. This segment?s products are focused on the human genetics, personalized medicine, and infectious disease segments of the genetic testing market. This segment provides various assay products, which consist of a combination of chemical and biological reagents, and company?s proprietary bead technology used to perform diagnostic and research assays on samples. It serves pharmaceutical companies, clinical laboratories, research institutions, and medical institutions in the United States, Europe, Asia, Canada, and Australia. The company was founded in 1995 and is headquartered in Austin, Texas.
Top 10 Value Stocks To Own Right Now: Sennen Resources Ltd. (SN.V)
Sennen Resources Ltd. engages in the acquisition and exploration of mineral properties. It holds an option to acquire 80% interest in the La Nava-El Paredon, a sulphide mineral deposit, which consists of 1 permit covering an area of 6 square kilometers and is located to the northwest of Cordoba in the Andalucia region of southern Spain. The company is headquartered in Vancouver, Canada.
Best Oil Service Stocks To Watch For 2014: Emerald Oil & Gas NL(EMR.AX)
Emerald Oil & Gas NL engages in the exploration and development of oil and gas properties. The company holds interests in various oil and gas properties located in Colorado, Wyoming, Kentucky, and Texas in the United States, as well as in offshore Western Australia. The company is based in West Perth, Australia.
Best Oil Service Stocks To Watch For 2014: Prudential Public Limited Company(PUK)
Prudential plc provides retail financial products and services, and asset management services to individuals and businesses in Asia, the United States, and the United Kingdom. It offers savings, protection, investment, and unit-linked products; manages investments across a range of asset classes for internal, retail, and institutional clients; manages onshore mutual funds; and provides retirement planning, consumer and Islamic finance, and health solutions. The company also provides retirement savings and income solutions; variable annuities; fixed and fixed index annuities; term life, universal life, and variable universal life insurance; permanent individual life insurance; and institutional products, such as guaranteed investment contracts, funding agreements, and medium term note funding agreements. In addition, it offers pensions and annuities; investment plans; and car, health, home, travel, and protection insurance policies. Further, Prudential plc provides fund man agement services for individual and institutional clients. The company was founded in 1848 and is based in London, the United Kingdom.
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