With fracking margins tightening over the past few years, oil services companies are having to evolve. Businesses such as Core Laboratories (NYSE:CLB) are taking a chance on long-term success through diversification -- including testing and reservoir analysis -- while risking a short-term hit by turning away from their traditional offerings.

In this "Digging for Value" video, Fool energy and materials analysts Joel South and Taylor Muckerman talk about the shift oil services companies have made in the past few years. 

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Joel South owns shares of Core Laboratories. Taylor Muckerman owns shares of Core Laboratories and Halliburton. The Motley Fool recommends Core Laboratories and Halliburton. 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.