Oil and Natural Gas Extraction Employment per Capita

As a group, KMI and OKE have risen 9% since I recently purchased them. The high volatility, even when it works in my favor, makes me more than a bit nervous. A primary goal of mine is to not lose sleep over my investments. A secondary goal is to be especially fearful when investors are especially greedy. Are oil and natural gas investors being especially greedy right now? The following chart suggests that we are not.

I thouht about locking in some oil and natural gas gains and reducing my exposure today. After creating this chart, the feeling passed. There seems to be plenty of room left to run.

September 27, 2021
Nasdaq: US Oil & Natural Gas Rig Tally Rises for 3 Straight Weeks

Natural Gas Rig Count Declines in US: Natural gas rig count of 99 was lower than the prior-week count of 100. The count of rigs exploring the commodity was, however, higher than the prior-year week’s 75. Per the latest report, the number of natural gas-directed rigs is roughly 94% below the all-time high of 1,606 recorded in 2008.

This is definitely not investment/speculation advice. There's a reason why these stocks have high dividends and are so volatile. With great rewards come great risks. Only hindsight can show if the risk was actually worth it, and even then it might not be. If one bets their life savings on a triple or nothing coin flip, the math says it is a great bet. It would be little consolation if one loses though.