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What the “One-Stop Shop” Approach Means for Oil Field Services Stocks

by Dr. Kent Moors | published January 23rd, 2014

Oil field services (OFS) companies seem poised to head even higher…

The question now is whether this is sustainable and, if so, how wide the range will be?

As for the sector, it has gone through several waves of consolidation, with the big boys each working to build their own vertical markets.

Through an ongoing series of foreign mergers and local acquisitions, Halliburton Co. (NYSE: HAL) and global leader Schlumberger Ltd. (NYSE:SLB) have managed to prune out much of the competition.

These two giants (among others), have been absorbing support entities, delivery systems, and most importantly the manufacturers of the equipment used in field work.

Think of it as movement to create a “one-stop shop.” But for OFS investors, the results of this trend have been a bit uneven.

Here’s where I think this all-important sector goes from here…