While there are plenty of oil service firms, Schlumberger Limited (SLB) might already be winning the battle for Mexican oil production. The company was a major winner of the few production-enhancing contracts issued back in 2009 during the first round of energy reform.
Like many of the others on this list, that puts Schlumberger in the driving seat when it comes to future deals versus rivals like Halliburton (HAL).
Given that PEMEX lacks the technical expertise needed to drill in the deep waters of the Gulf or tap the large deposits of oil and gas trapped in shale, analyst estimate that Mexico will need to spend about $10.5 billion on drilling and completion services over the next two years. This will put some serious coin back into SLB’s pockets over the longer term.
For investors, Schlumberger could be the best way to position future oil service gains in the sector.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.