Ritter Group Sees Huge Growth In The Energy Sector
Ritter Group foresees that prospects for the oil services industry are exceptional this year. A recent survey of 402 oil companies showed that the oil industry is planning to spend apx $490 billion on projects in 2011, a gain of apx 12% over 2010.
- (1888PressRelease) July 26, 2011 - Share prices of energy stocks are amplified in the oil services sector. Both sectors have a history of moving higher from February to May. During the past 13 periods, the entire sector had an average gain per period of 16%. Rising crude oil and refined product prices during the February to May period influences seasonality in both sectors.
Ritter Group foresees that prospects for the oil services industry are exceptional this year. A recent survey of 402 oil companies showed that the oil industry is planning to spend apx $490 billion on projects in 2011, a gain of apx 12% over 2010.
The planned increases reflect higher crude oil prices as well as higher costs of finding and extracting oil in harder to access areas.
Large projects currently under development are located offshore Western Australia and the South China Sea. The largest project is located offshore Brazil. New oil companies have budgeted apx $28 billion for capital costs related to development of its deep-water oil fields off Brazil's Atlantic coast.
Demand for deep-water rigs continues to grow despite the drilling moratorium in the Gulf of Mexico and despite another 25 new deep-water rigs that came on stream in 2010. Another 35 rigs are scheduled to be built in 2011.
New technologies in the industry are also driving revenue and earnings. Most notable has been the rising demand for rigs capable of horizontal drilling used to tap shale gas.
On the charts, the sector has been a stellar performer since last September. The intermediate trend remains up. The National Fuel Index trades well above its 50 and 200 day moving averages.
As Ritter Group sees it; short-term momentum indicators are overbought, but have yet to show technical signs of peaking. The preferred strategy is to purchase the sector on weakness.
About Ritter Group:
Ritter Group is a premier provider of seed and early stage venture capital for innovative companies. Ritter Group works tirelessly to be the best across a global market and global technology areas including Biotechnology, Clean-tech, Information technology, Telecommunications, Diagnostic technology and Medical technology. Ritter Group provides unparalleled help and trusted advice across key aspects of company building including strategy, recruiting and business development.
Press Contact:
Barbara Gould, Ritter Group Media Coordinator, press ( @ ) rittergroup dot com
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