The oil and gas companies have gained significantly this year due to rebounding demand and OPEC’s supply cuts. Goldman Sachs Group anticipates high oil demand in the upcoming years. This should bode well for oil and gas infrastructure stocks NOW Inc. (DNOW) and Geospace (GEOS). These stocks are currently trading under $10 and are buy-rated in our proprietary rating system.The oil and gas sector has registered a stellar recovery in 2021. As the year draws to a close, the oil market seems to be on a better footing, and the surge of COVID-19 cases is expected to slow down temporarily but not derail oil recovery. Global oil demand is set to increase 5.4 mb/d in 2021 and by 3.3 mb/d in 2022 and return to pre-pandemic levels, according to the International Energy Agency (IEA).
The investment bank Goldman Sachs Group Inc. (NYSE:GS) has predicted a high oil demand for 2022 and 2023. As post-pandemic demand has outpaced supply, oil prices have spiked in recent months. This should bode well for the oil and gas equipment companies. The global oilfield equipment market is expected to reach $139.3 Billion by 2026, growing at a CAGR of 2.8%.
Therefore, the under $10 oil and gas equipment and services stocks of NOW Inc. (DNOW) and Geospace Technologies Corporation (GEOS) might be solid bets. These stocks are rated B (Buy) in our proprietary POWR Rating system.