Oilfield Services Stocks

Oilfield services play a significant role in the energy industry. From seismic exploration to transport and well evaluation, these services perform a variety of roles in the energy acquisition process. Leaders in oilfield services focus on improving operations and reducing costs. With an array of resources at their disposal, these organizations can effectively provide a range of solutions to their clients.

Oilfield services companies offer a range of technology-based services that are essential for successful field operations. This oilfield services company provide services for everything from locating and extracting energy sources to drilling evaluation, reservoir engineering, and geological sciences. The rise of technology-based services has created opportunities for larger oilfield services companies, which have capitalized on the opportunities offered by technological advances.

Investors can look to oilfield services firms as a complementary part of their overall portfolio or as a value play on their own. The industry has a strong cyclical nature and oil and gas prices can impact the value of oilfield services companies. They are also often priced on an EV/EBITDA basis.

The market for oilfield services is largely consolidated, with Schlumberger Limited and Halliburton Company holding the largest shares of the market. The companies have been making moves to introduce new technology to increase efficiency and profitability. In January 2017, Schlumberger acquired Peak Well System, a company that specializes in advanced downhole tools for well integrity and flow control, Click here for extra info.

Oilfield services providers emerged as a result of the oil price slump in the late nineties. Additionally, the mega-mergers of BP-Amoco and Exxon-Mobil in 1999 allowed for more efficient logistical operations and reorganization of assets. In-house ownership led to inefficiencies and redundant cost centers, making it expensive for E&P companies to provide upstream services.

Oilfield services companies are essential to the oil and gas industry. Oil extraction is a 24/7 process and requires the services of thousands of workers. These workers range from Field Service Technicians to Maintenance Technicians. Companies that offer oilfield services are found all around the world. They are the lifeblood of the oil and gas industry.

Global oil prices have fallen forty-five percent since 2014, which has impacted the market capitalization of OFS companies. While global OFS companies experienced modest revenue increases during 2017-18, their cost structures have risen more rapidly than their revenues, squeezing their operating margins. As a result, oilfield services companies face a difficult time in the recovery process. You can get more enlightened on this topic by reading here: https://en.wikipedia.org/wiki/Oil.

As oil and gas production continue to grow, oil and gas companies need more sophisticated equipment. The rigs used for drilling oil and gas wells have advanced technologies. The use of more powerful oilfield services equipment and techniques is vital to the industry's success. The industry is expected to grow for several years. These companies will continue to improve their services and their infrastructure in order to compete for customers.

As oil prices rise, oilfield services companies may be forced to invest more money in capex. This is necessary to maintain current production. Meanwhile, as E&Ps increase investments in shale production, oilfield services players will need to invest more to remain competitive. Ultimately, these factors should boost the demand for oilfield services.