According to Oilprice.com, the current rig count has been steadily but slowly climbing up.
The total rig count rose to 576—a figure that is 238 up from this time last year. Active rigs are still hundreds less than the 790 active rigs that were drilling in the pre-covid world.
OilPrice.com
We are at 73 percent rig drilling production than pre-covid with increasing demand as the world tries to return to a post-covid world. Will the production be able to meet demand?
Some traders are expecting natural gas prices to continue to increase but the EIA report shows a bit of a stall so what will happen?
What will happen in the short term is a coin toss but what WILL happen over the long term is demand for energy, of all kinds, will grow.
With high inflation globally and our desire to earn additional income to offset increasing prices in our defensive portfolio we continue to look at dividend income stocks. We recently added PSX to our portfolio and may add more on strong pullbacks. We are positioning ourselves for the long term with these stocks.
Stay tuned and stay solvent…
Disclosure: As of the posting of this article, one or more members of the Econonaut have position(s) in PSX.