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The amount of capital invested in oil and gas fields next year will again set a new record, with estimates of $723 billion being spent to secure hydrocarbons for worldwide consumption, according to Barclays . The four large integrated oil companies -- ExxonMobil, Chevron, BP, and Shell -- will make up about 20% of the spending.
Increased spending on costly exploration projects are risky for oil and gas producers, but provide clear benefits to service companies. Two players to watch are offshore drillers Atwood Oceanics (NYSE: ATW ) and Seadrill (NYSE: SDRL ) . Both of these offshore drillers have new and safe drilling fleets, commanding higher dayrates for their high-specification rigs.
Profit from the domestic energy spending
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.
This segment is from Thursday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.