By Andrew Nichols: EnerCom
Since August 2020, the number of United States oil and gas rigs steadily increased up to 470 oil rigs. The increase in oil rigs brings in more business and causes the price of shares for service companies to go up as shown by the OSX Index. This is a price-weighted index composed of 15 companies that provide oil drilling and production services. Also, these companies offer oilfield equipment, support services, and geophysical/reservoir services. The Index increased in value by 102% over the past year with 14 of the 15 companies being net positive. The highest performing company in the OSX Index is Nabors Industries LTD whose market capitalization more than doubled in the first quarter of 2021 reaching 940 million. Their stock price increased 81% and is now the highest in the Index at $116 at the time of writing.
