When most people think of oil, they think of light, sweet crude that comes up out of little holes in the ground. You describe oil by its API gravity. For example, oil like Brent crude or West Texas Intermediate has an API gravity of 38-40. The oil that Col. Drake pulled from the ground at Titusville, Pa., in 1859 had API gravity near 60. These types of oil are relatively easy to pump from a reservoir, lift to the surface and transport via pipeline to the refinery.

The Shift to Heavy Oil, with an “Energy Microsoft” at the Forefront

But a significant portion of the world’s oil is much lower quality than the light, sweet stuff. Indeed, most oil that’s found in nature is a heavy, viscous hydrocarbon with the consistency of cold molasses. This heavy oil - defined as API gravity 22.3 or less - is difficult and costly to produce

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For Immediate Release

Chicago, IL - April 27, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lockheed Martin Corp (LMT), Schlumberger, Ltd. (SLB), Halliburton's (HAL), deCODE genetics, Inc. (DCGN) and Celera Corp. (CRA).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Friday's Analyst Blog:

Lockheed Beats & Ups Guidance

Lockheed Martin Corp (LMT) reported a 1st quarter 2009 profit of $666 million, down 9% from $730 million in the 1st quarter of 2008.

On a per-share basis, the reported result was $1.68 per diluted share, down 4% from $1.75 per diluted share

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Highlights include Schlumberger, Ltd. (SLB), Halliburton Co. (HAL) and Diamond Offshore Drilling, Inc. (DO).Oilfield service giant Schlumberger, Ltd. (SLB) reported first-quarter earnings this morning that were inline with our above-consensus estimate and provided an overall outlook of continued weakness through the rest of 2009.Margins help up better than expected, with international resilience offsetting North American softness. Given its benchmark status, Schlumberger's results and its dour outlook sets the stage for the rest of the oilfield service group. Contrary to Halliburton's (HAL) view of a near-term stabilization in the onshore U.S. drilling scene, Schlumberger does not expect a recovery before the middle of 2010.In the international markets, while the extent of declines has been limited, customers are reportedly seeking and getting price relief. They see deepwater market holding better than any other segment through this downturn. Schlumberger's favorable deepwater outlook ...

Highlights include Schlumberger, Ltd. (SLB), Halliburton Co. (HAL) and Diamond Offshore Drilling, Inc. (DO).Oilfield service giant Schlumberger, Ltd. (SLB) reported first-quarter earnings this morning that were inline with our above-consensus estimate and provided an overall outlook of continued weakness through the rest of 2009.Margins help up better than expected, with international resilience offsetting North American softness. Given its benchmark status, Schlumberger's results and its dour outlook sets the stage for the rest of the oilfield service group. Contrary to Halliburton's (HAL) view of a near-term stabilization in the onshore U.S. drilling scene, Schlumberger does not expect a recovery before the middle of 2010.In the international markets, while the extent of declines has been limited, customers are reportedly seeking and getting price relief. They see deepwater market holding better than any other segment through this downturn. Schlumberger's favorable deepwater outlook ...

Companies mentioned here include Schlumberger (SLB), Nabors  (NBR), Patterson-UTI  (PTEN), BJ Services  (BJS) and Halliburton  (HAL).Schlumberger's Weak Outlook to Weigh on the GroupOilfield service giant, Schlumberger (SLB) reported weaker-than-expected 4th-quarter results this morning and provided an overall weak outlook for the coming quarters.Given its benchmark status, Schlumberger's results and its dour outlook set the stage for the rest of the oilfield service group. We expect earnings expectations for the group, particularly for 2009, to come down in the coming days.Schlumberger's 4th-quarter recurring EPS of $1.03 (we were expecting $1.10) was down from $1.29 in the preceding quarter and $1.11 in the year-earlier quarter. Quarterly revenue of $6.87 billion, below our $7.05 billion estimate, was down 5.4% sequentially, but up 10% year over year.Oilfield service revenue increased 15% from the year-earlier level, but declined ...