Joel: So, Taylor, there's a lot of storylines in the last year, over 2012. There's one sector that you've liked. It's a sector that you've invested in.

The oil and gas service industry has been really exciting. There's been a lot of dynamics, a lot of changes throughout the year. For a while everything was centrally based in North America, a huge, huge boom, and things are slowly changing.

Tell us about the industry in general, and what you like about it.

Taylor: Yeah. Right now you're really looking at companies moving offshore. You saw this huge boom in the United States onshore, with natural gas and the shale plays that were really emerging over the last few years, but now that that's taking a back seat to some of the deepwater plays.

What offshore locations are likely to take off? And which companies' investors are in prime position to benefit from this emerging trend? Watch the video to find out.

Joel South owns shares of Schlumberger and Halliburton Company. Taylor Muckerman owns shares of Ensco. The Motley Fool recommends Chevron Corp, Halliburton Company, and Seadrill. The Motley Fool owns shares of Halliburton Company, Seadrill, and Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.