Friday was a good day for the broad market, but a great one for oil and gas stocks. Schlumberger Limited (NYSE: SLB) ended today's session up 10.3% following an encouraging third-quarter earnings report, lifting several competitors' stocks with it. Transocean (NYSE: RIG) rallied 5.6% while Chevron (NYSE: CVX) closed 2.5% higher, for instance, capping off a third week of bullishness that could continue into the foreseeable future.

Still, investors will want to carefully pick and choose energy stocks in this environment.

As was noted, Schlumberger's third-quarter numbers deserve the bulk of the credit for Friday's energy stock gains. Revenue of $7.5 billion was up 28% year over year, and operating earnings of $0.63 per-share were 75% better than year-ago levels. Both figures also topped estimates of $7.1 billion and $0.55 per share, respectively. Ramped-up offshore and international drilling produced the bulk of last quarter's growth.

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Source Fool.com