Better Buy: Baker Hughes vs. Schlumberger Limited
Oil prices have plummeted in 2020, leaving a wake of destruction in the broader energy sector. Baker Hughes (NYSE: BKR) and Schlumberger Limited (NYSE: SLB) have been no exception. What should investors be thinking about these two energy services companies now, and is one a better option than the other?
There was already a supply glut in the oil market before COVID-19 and the OPEC/Russia price war. The main reason for the oversupply was the increasing prominence of onshore U.S. drilling. As the U.S. pumped more and more oil, the normal dynamics in the global industry started to shift. OPEC attempted to deal with this, and keep oil prices up, by cutting its production. That, however, wasn't enough, because U.S. oil simply replaced the disappearing barrels.
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Source Fool.com
