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Three ‘Keepers’ in the Booming US Oil Service Sector
I like to bang the drum for oil field service companies. This sector of the energy biz offers great long-term investment opportunity, for reasons I’ll detail below. The best of the service companies are solid and well run, with long, profitable histories.
You should buy selectively over time, certainly during “down” periods. The service plays are attractive as core long-term holdings in every energy portfolio.
Why? Let’s begin with an illustration…
The other day – a chilly, crisp Sunday morning – I was driving along an old two-lane road in Washington County, south of Pittsburgh. I rounded a bend and saw this new production pad built by Range Resources.
The photo shows separation and storage tanks. Also, behind what you see here are seven “Christmas tree” valve assemblies. These represent the topside equipment for seven directional fracked wells, at about $10 million each. So what does this photo represent?
Read the rest of this article at Money Morning
