If you are willing to take a risk and you think oil will be $60/barrel again within two years, there are lots of companies in the oil patch selling at bargain prices. Offshore drilling in particular has been hit hard. All of the offshore drillers have about half their rigs sitting idle, and the contracts they sign nowadays are at or below breakeven prices. It could be years before they bring in the kind of money they made in 2013, but when oil goes up those stocks are going to explode. RIG, ESV, RDC, DO and NE are the five companies most likely to survive the downturn. HOS, an offshore service company, is an even more speculative bet as they’ll be the last in line to get paid, but their stock is dirt cheap right now.
If you want to invest in any of those companies, make sure you do your homework. Some are going through mergers, others have excessive debt, others have a large pool of obsolete rigs that will never work again. This is a risky, but potentially rewarding sector to invest in.
Disclosure: Long ESV, DO, HOS