Oil Services and the $40 Billion Iraq Opportunity (SLB, BHI, WFT, HAL, OIH)

Morningstar has issued a report this week for oil services operations calling the opportunity in Iraq as “one of the greatest capacity increases in the industry’s history.”  The analysis says that the recent Iraqi oil auctions created a multi-billion dollar opportunity for firms such as Schlumberger Ltd. (NYSE: SLB), Baker Hughes Incorporated (NYSE: BHI), Weatherford International Ltd. (NYSE: WFT), and Halliburton Company (NYSE: HAL).  The winning oil and gas companies have committed to boosting production capacity in Iraq to around 12 million barrels per day, in about six or seven years, from about 2.5 million barrels per day today.
-Article by Stephen Ellis

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It is also worth noting that these four companies directly account for 36.5% of the weighting of the Oil Services HOLDRS (NYSE: OIH) ETF for the sector, and there is another 10% of the weighting between BJ Services Co. (NYSE: BJS) being acquired by Baker Hughes and Smith International Inc. (NYSE: SII) being acquired by Schlumberger.