Oilfield services companies provide a wide range of products and services to the oil and gas industry. From exploration and production to geological sciences, these companies play an essential role in successful field operations. Using cutting-edge technology, these companies are helping oil and gas companies improve their efficiency. Their analytics help them identify future areas of growth, predict rig activity by basin, and manage overall risk, you can click to learn more here.
Rising energy demand and lucrative investment opportunities have caused the oil exploration activities to rise. Baker Hughes GE was recently awarded a contract for drilling at i3 Energy PLC's Serenity and Liberator assets in the North Sea. According to the DNV-GL Energy Transition Outlook, conventional onshore oil production will account for more than 70 million barrels per day in 2022. Meanwhile, unconventional onshore oil production is expected to double to 22 million barrels per day by 2035. In 2015, unconventional oil production accounted for almost 30% of the global crude oil production.
Pressure pumper revenue is highly correlated with oil prices. And it is even more closely related to exploration companies' capital expenditures. Therefore, oilfield tools supplier and services investors should monitor upstream producer earnings calls and investor presentations to understand how oil prices are affecting their companies. The higher oil prices mean a higher oilfield services revenue.
Oilfield services include the creation and maintenance of facilities and equipment related to the oil and gas industry. These services include drilling, well construction, and completion services. Companies in the oil and gas industry also conduct seismic tests. These services can help in the identification of oil and gas reserves. These companies are based around the world.
While oil and gas prices are still at record highs, OFS is still behind the curve in terms of valuation. In fact, the IEZ fund trades five to six times lower than its peak point. That said, oilfield services stocks are still a good bet for bullish energy investors. Investors can add oilfield services exposure through individual stocks or oilfield services ETFs.
Oil and gas extraction is a huge industry that requires a large network of companies. Whether drilling is offshore or in the ocean, there is a need for a variety of oilfield services to meet the demands of the industry. These companies perform everything from drilling to fracking. The search for oil and gas begins with exploration. This process includes searching for hydrocarbons and shale formations. For example, engineers use a process called seismology to look for these fossil fuels. You may need to check out this article: https://en.wikipedia.org/wiki/Oil to get more info on the topic.
Oil and gas producers are increasingly drilling deeper and longer wells. The amount of proppant used per well has also increased. With advances in technology and rigs, oil and gas production have increased. Oilfield services companies must invest in new equipment to keep up with this growth.