The double-barreled firepower of high oil and natural gas prices shot energy companies to prominence in the Chronicle 100 rankings for top profit growth, profit margins and return on equity. Exploration and production companies such as Anadarko Petroleum found that energy prices had risen to the point that it was worthwhile to spend the money to search more for oil and gas. The good fortunes of exploration and production companies spilled over onto the bottom lines of drilling companies, which provide the equipment energy companies use to search for oil and gas. They used to be the most unprofitable companies in Houston. The best thing drillers have going for them is that demand for their equipment and services has surged, while the supply of equipment has dwindled, analysts said.
Rigs are harder to find.
Demand for energy continues to go up, as we're dealing with a depleting resource. Co. Generally, the assumption has been that reserves will deplete at a rate of about 7 percent to 10 percent a year for oil and gas, Brooks said. At the same time, increased energy demand worldwide is putting pressure on oil companies to replenish reserves, Brooks said. While that demand is coming from the United States and Europe, the lion's share is roaring from countries such as China, India, Thailand and the Philippines, he said. That's the kind of energy growth that you're seeing in the Pacific Rim area.