With another weekend here, it's time to research an item that made an important shift during the week. As oil topped $50/bbl last week, a couple of important news worthy items occurred. First, Continental Resources (CLR) discussed starting to complete the DUC wells in the Bakken. Second, the rigs drilling for oil increased for the second consecutive week. Both of these items are bullish for the beaten down oil services sector. The E&P market might not be aggressively drilling new wells, but Continental signals that wells already drilled and not completed are starting up. Bloomberg listed nearly 5,000 DUC wells at the end of 2015 that need frac crews to pull these wells online. The other bullish news was that the domestic right count increased by 6 rigs with 3 each for oil and natural gas. The report follows an increase of 4 rigs last week entirely focused on drilling for oil. All signs show that the drilling rig count has finally reached bottom. Most stocks in the oilfield services sector will benefit from both the increased drilling rigs and most importantly the fracking of existing DUC wells. One primary beneficiary is C&J Energy Services (CJES) that has seen the stock surge back to $1 this week. Any large oil services company from Halliburton (HAL) to Baker Hughes (BHI) after the cancelled merger to beaten down Weatherford (WFT) will benefit from increased spending in the domestic shale sector. The companies that won't really benefit are the ones that operate the drilling rigs such as Helmerich & Payne (HP) or Patterson-UTI Energy (PTEN). The recent minimal gains in rig counts and the reduced need for rigs going forward makes the investment thesis on the equipment companies less positive at this point. Disclosure: Long HAL