Oil well investing strategies are adapting to tech-driven drilling efficiencies. Improved lateral lengths are yielding higher initial production (IP) rates, encouraging bullish sentiment in oil equities. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy . With futures contracts, you agree to purchase oil at some specified price in the future, and you need to put up only a portion of the contract’s value now. Because of this structure, futures let traders buy much more than they would otherwise be able to, and if things go well, they can earn a lot of money. But they can lose it just as quickly if the commodity’s price moves the wrong way. Global energy reports show oil well investing capital inflows crossing $1.2 billion in Q1, marking a 9-month high. Analysts cite strong pricing fundamentals and disciplined output controls as core drivers.