PowerShares Dynamic Oil & Gas Services Portfolio
With production from “legacy” and mature fields declining rapidly, unconventional assets will continue to be the go-to resources for many E&P firms. However, tapping them requires some real technological know-how and specialized equipment.
Providing all of that equipment and technology falls to the vast oil services sector, where business is booming. After all, Halliburton (NYSE:HAL) makes money no matter what E&P firm is fracking what.
While there has been a slowdown recently due to lower energy prices and fewer rig counts, the services sector will see great long-term profits as hydrocarbon demand continues to grow. For investors, the sector could one of the best ways to bet on the growth in unconventional shale plays.
One of the best ways to add broad exposure is through the PowerShares Dynamic Oil & Gas Services Portfolio (NYSE:PXJ). The fund’s mandate and 30 holdings cover the wide spectrum of oil services — including independent drillers, field equipment, engineering and construction, and geophysical data — for a mere 0.63% in expenses.