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3 Oil & Gas Equipment Stocks to Gain From the Promising Industry

Oil prices remain highly favorable, boosting exploration and production activities and driving robust demand for drilling and production equipment. This positive trend enhances the outlook for the Zacks Oil and Gas- Mechanical and Equipment industry. Investors are encouraged by the industry players' inorganic expansion strategies and initiatives to reduce Scope 1 and 2 emissions. Several oil and gas equipment companies boast strong balance sheets with no debt, positioning them well to navigate business uncertainties. Leading companies in this space include Kodiak Gas Services, Inc. (NYSE: KGS), PEDEVCO Corp. (AMEX:PED), and Profire Energy, Inc. (NASDAQ: PFIE). About the Industry The Zacks Oil and Gas - Mechanical and Equipment industry comprises companies that provide necessary oilfield equipment — production machinery, pumps, valves and several other drilling appliances like rig components — to exploration and production companies. These help upstream energy players extract crude oil and natural gas from fields onshore and offshore. Hence, the well-being of oilfield equipment businesses is positively correlated to expenditures by upstream companies. These companies receive deals from integrated energy firms and independent as well as national oil and gas companies. Oilfield equipment providers also design, manufacture, engineer and install products that treat and process crude oil, natural gas and others. Their products comprise gadgets and instruments for gas compression packages and water treatment works. What's Shaping the Future of the Oil & Gas Equipment Industry? Drilling & Production Equipment Demand to Improve: The demand for drilling and production equipment is poised for significant improvement as oil prices exceed $80 per barrel. This favorable pricing environment is encouraging exploration and production companies to escalate their upstream activities, thereby driving robust demand for drilling ...