Oil exploration in India was kicked off by NELP program of the government. Shortage of drilling equipments is a major problem for existing oil block holders and new licensing programs. Companies are in the process of acquiring new equipments inorder to cash in. The outsourcing rates for the equipmets is also going high due to potential shortage till 2012. So, this is the time to enter in to the best sectoral stocks such as Shiv-Vani, Hindustan and Jindal. All the above companies have good exploration experience in India. Hindustan Oil Exploration Co. has higher P/E due to expections on higher profit margins in future.
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