The increased interest to drill into new source has benefited the service industry that caters toward big oil companies. Specifically, OIH and IEZ include heavy tilts toward Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL), which combined make up over 30% of the two ETFs’ total allocations.
“The incremental barrel of oil being produced is increasingly coming from areas (deep water, oil shale, the Arctic) that demand more services expertise and technology,” according to Morningstar analyst John Gabriel. “Such a dynamic supports healthy long-term industry trends and pricing power.”
Market Vectors Oil Services
For more information on the oil industry, visit our energy category.
Max Chen contributed to this article.