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• 5 min read
• Published on 1 August 2025
View the full Basket:Powering Production: The Oil Services Surge
For as long as I can remember, investing in oil has been a simple, if rather brutish, game. You’d watch the barrel price on the news like a hawk. When it went up, you felt clever. When it went down, you felt like a mug. The fortunes of the big producers, the Exxons and Shells of this world, were lashed to that single, volatile number. It was a rollercoaster, and frankly, a bit of a headache.
But then, something interesting happened. Exxon Mobil posted some rather handsome earnings, and the reason wasn't a spectacular surge in oil prices. No, the secret sauce was something far more mundane, and to my mind, far more compelling. They simply pumped more of the stuff out of the ground. It seems the giants of the industry are finally learning a lesson every pub landlord knows, it’s often better to sell more pints than to just keep hiking the price of one.
View the full Basket:Powering Production: The Oil Services Surge
This shift from chasing prices to chasing volume is, I think, a quiet revolution. It changes the entire investment landscape. If a producer decides to ramp up its output, it can’t just turn a magic tap. It needs an army of specialists. It needs the engineers who figure out where to drill, the crews with the heavy machinery to do the digging, and the tech wizards who get the oil flowing efficiently.
This is where the oil services companies come in. Think of them as the plumbers, electricians, and engineers of the energy world. They are the ones doing the actual work. Companies like Schlumberger, Halliburton, and Baker Hughes provide the essential kit and expertise. They supply the drills, the pumps, and the clever software that makes modern extraction possible.
When a producer like Exxon commits to a volume strategy, these are the firms that get the call. Their order books fill up not because the price of oil is £100, but because someone has decided to drill ten new wells instead of five. Their revenue is tied to activity, not speculation. And in a world as unpredictable as ours, activity feels like a much safer horse to back.
View the full Basket:Powering Production: The Oil Services Surge
So, why should this pique your interest now? Well, it seems to me that the market hasn't quite caught on. Many investors are still fixated on the headline oil price, leaving the services sector looking relatively unloved. These companies have spent the last few lean years tightening their belts, shedding costs, and becoming brutally efficient. They are now lean, mean machines, perfectly positioned to profit from an uptick in work.
It’s a classic cyclical play, but with a twist. Instead of just betting on a commodity boom, you’re investing in the underlying industrial activity that powers the entire sector. To me, this feels like a far more robust proposition. It’s a trend we’ve been watching closely, and it forms the core thesis behind the Powering Production: The Oil Services Surge basket. The logic is simple, you are backing the people with the shovels during a gold rush.
Of course, let's not get carried away. This isn't a risk-free punt. The energy sector is notoriously volatile, and a complete collapse in oil prices would hurt everyone, plumbers included. These are also complex industrial operations where things can, and do, go wrong. But the fundamental point remains. By focusing on the service providers, you are insulating yourself, at least partially, from the wild swings of the commodity markets and betting on something more tangible, the sheer volume of work that needs to be done.
View the full Basket:Powering Production: The Oil Services Surge
View the full Basket:Powering Production: The Oil Services Surge
View the full Basket:Powering Production: The Oil Services Surge
View the full Basket:Powering Production: The Oil Services Surge
View the full Basket:Powering Production: The Oil Services Surge
View the full Basket:Powering Production: The Oil Services Surge
This article is marketing material and should not be construed as investment advice. No information set out in this article be considered, as advice, recommendation, offer, or a solicitation, to buy or sell any financial product, nor is it financial, investment, or trading advice. Any references to specific financial product or investment strategy are for illustrative / educational purposes only and subject to change without notice. It is the investor’s responsibility to evaluate any prospective investment, assess their own financial situation, and seek independent professional advice. Past performance is not indicative of future results. Please refer to our Risk Disclosure.
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