Should U.S. Oil Investors Be Concerned About Declining Rig Count Numbers?

On Sept. 6, the number of operating drilling rigs in the United States fell below 900 for the first time since 2017. Month-after-month declines in rig count have weakened the stock prices of pure-play drilling companies. Although they're nearing record-low levels, let's not throw the baby out with the bathwater.

Long term investors should first choose a sector they are interested in and then focus on individual companies that cultivate shareholder value. Let's look at how four parts of the upstream oil and gas industry -- pure-play drillers, oilfield services, exploration and production, and the integrated majors -- will likely react to a dropping rig count and whether there are energy stocks within each section that are suited for a long term investment. 

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