In its latest report, the EIA expects US oil production to reach 17 million barrel a day by 2023, 70% higher than current output of 10 million barrels a day. The agency cited that improved drilling technology and consumption growth would be the major drivers for higher output.

Market OutPerformers doesn’t take EIA estimates for granted as the agency has previously issued many predictions which turned out to be overly optimistic. However, even if oil output increased by a fraction of the expected increase, that is still good for the US economy.

What should investors do? Our advice is not to bet on E&P companies as the oil price with that kind of output is highly uncertain.

What we see as a safer strategy is to bet on shovel and pail providers. This includes oil services companies like Schlumberger, Halliburton, and Baker Hughes. Last week, we explained why Baker Hughes is our top pick in this sector.

If EIA estimates turned out to be true (or partially true at least), buying a stock at the right time like BHGE should reward investors generously as timing is the most important aspect of investing. And we believe that it is the right time to jump into Baker Hughes stock.