Baker Hughes Incorporated (BHI), Schlumberger Limited. (SLB), Halliburton Company (HAL): Should You Consider Investing in This Courtroom-Bound Oilfield Trio?

The oilfield market in the U.S. is very uncertain. One of the reasons why Schlumberger Limited. (NYSE:SLB) has managed to reel in positive results is because of its insulation to North American supply shocks. On the back of its strong exploration and drilling operations in China, Australia, Saudi Arabia and Iraq, Schlumberger’s free cash flow over the past decade has been of $21.9 billion – almost five times the combined amount for Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI)

Verdict

At a time when global demand for oil is increasing – albeit not at levels witnessed before the 2009 global meltdown, it is quite obvious that oilfield service providers stand to benefit. As more rigs come online, companies with global exposure can sustain localized supply shocks as is shown by Schlumberger Limited. (NYSE:SLB). Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI) are undoubtedly very capable companies, but they are not insulated from the North American volatility as Schlumberger is. The collusion allegations against the three companies are expected to be a long-drawn saga as courtroom battles always are. However, by the time investors get a decision on the matter, I believe Schlumberger will be in a far better position than its rivals.

Awais Malik has no position in any stocks mentioned. The Motley Fool recommends Halliburton.

The article Should You Consider Investing in This Courtroom-Bound Oilfield Trio? originally appeared on Fool.com.

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