With Brazil accounting for 27% of all deep- and ultra-deep offshore wells drilled in the last two years, according to Reuters, leaving the fast-growing is not a choice most oil services firms want to make even if operating there subjects them to higher costs and taxes along with less-than-desirable margins.
On the upside, many of OIH’s largest holdings are still more exposed to North America than other markets. For what it is worth, National Oilwell Varco (NYSE: NOV), Halliburton and Baker Hughes were all recently on the receiving end of bullish chatter on CNBC. That trio represents 20% of OIH’s weight.
Market Vectors Oil Services ETF
ETF Trends editorial team contributed to this post.