Who really skim the cream off from oil?

Analysts have found a way to make money on the extravagance of oil companies. Shares of oil producers themselves are characterized by high volatility and therefore are not always suitable for long-term investments. You can avoid the risk of cheaper oil if you invest in a large contractor.
Generous orders of oil producers for assistance in exploration, field development, pipe laying and other services go to so-called oilfield services companies. Over the past year, the turnover of this market amounted to $ 250 billion, calculated in Fortune Business Insights. According to their research, by 2026 this market will reach $ 330 billion. The annual growth rate will be 3.7% per year.
Growing demand for oil and gas will contribute to the rise of the oilfield services segment. Because of this, more and more companies will appear on the market that will need help with pumping oil.
The growing demand for oil services in the United States due to the presence of shale gas in the reservoir. Because of it, it is especially difficult for oil producers to drill wells.
Schlumberger and other companies in this sector position themselves as experts who can help organize mining even in the most difficult areas. Because of this, such companies often receive orders from oilmen.
As a result, for investors, the shares of this company should be very attractive. Meanwhile, the world's largest oilfield service company Schlumberger is trading at the lowest level since the 2008 financial crisis. Over the past year, the company's shares fell by almost half. Their cost has fallen by 48%.
The fall of Schlumberger's quotes occurred within the framework of reducing the cost of the entire industry. But now the company is able to recover: more and more wells are being drilled in the US, and investors are beginning to realize that Schlumberger is earning enough money to pay big dividends.

The information above cannot be considered as an investment advice and past results do not indicate future performance.
**Investors should have experience and understand the risks of losing all the initial investment.
80% of retail investor accounts lose money when trading CFDs with GMOTrading.

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