After the 1979-81 oil boom went bust, a lot of U.S. land drillers stacked their iron and headed for bankruptcy hearings. But more than a few drilling contractors, even though decimated by the oil and gas bust, held onto a rig here and a rig there and took the opportunity to pick up discarded iron for pennies on the dollar. Still others, seeking to compete for work in a badly fractured drilling market, took the time to cobble together newer mud pumps, higher-horsepower rigs and higher-grade drillpipe to create more marketable rig packages. These weren't merely survivors. These were contractors with a vision-people who understood how cycles work. In short, they understood the inverse of one of Newton's laws of physics-that what comes down will eventually go up again. Today, amid $65 oil and $8-plus gas, that vision has been rewarded. Two such land drillers that weathered the downturn of the 1980s and capitalized on acquiring old rigs and building new ones before the iron market turned red hot are Union Drilling Inc. (Nasdaq: UDRL) and Pioneer Drilling Co. (Amex: PDC). For more on this, see the July issue of Oil and Gas Investor. For a subscription, call 713-260-6441.
Recommended Reading
Hess Pushes Shareholders to Vote in Favor of $53B Chevron Merger
2024-04-01 - Hess Corp.’s board is unanimously recommending its shareholders vote in favor of the proposed $53 billion all-stock merger with Chevron Corp., according to Chevron’s March 28 Securities and Exchange Commission filing.
Exxon Signals Potential Counter Offer for Hess’ Guyana Assets
2024-03-07 - Exxon Mobil has filed a contract arbitration claim related to Chevron’s proposed purchase of Hess Corp.’s interests in the Stabroek Block offshore Guyana.
Chevron CEO Talks Guyana M&A, Exxon Dispute
2024-03-19 - Chevron Corp. CEO Mike Wirth said during CERAWeek by S&P Global that California’s company’s plan to acquire Hess Corporation, and specifically its 30% interest in the Guyana offshore Stabroek Block, was an important deal as well as good one.
CERAWeek: Exxon Mobil CEO Says Not Trying to Acquire Hess
2024-03-18 - CEO Darren Woods said Exxon Mobil is trying to secure preemption rights over Hess Corp.'s Guyana assets in its dispute with Chevron, not buy the company itself.
Chevron, Exxon in Dispute Over Hess Stake in Guyana Oil Block
2024-02-27 - Chevron’s $53 billion deal to buy Hess’ interests in the Stabroek Block offshore Guyana could be derailed as Exxon, CNOOC say they have first rights of refusal on the block’s interests.