Sometimes in energy investing, the companies focused on services can be overlooked by investors, but they can be some of the most crucial components in the space. In the following video, Motley Fool energy analyst Joel South tells us about Core Laboratories (NYSE:CLB), a company that focuses on testing and analyzing reservoirs for the major oil and natural gas players. As drilling methods become more advanced with the current push toward horizontal drilling, the cost of drilling is shooting up, and companies like Core Laboratories, and the analyses they provide, are essential for increasing hydrocarbon yields in the new age of drilling.

Joel South owns shares of Schlumberger. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of ExxonMobil. 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.