Oil Services Stocks Stage Historic Comeback - Expert Highlights An 'Accumulating Strength'

For nearly 20 years, energy names underperformed technology as capital chased scalability, innovation and margins. The tables are now turning.

Oilfield services stocks have erupted into the spotlight in 2026, with the VanEck Oil Services ETF (NYSE:OIH) rallying nearly 30% year-to-date through Feb. 4—making it the best-performing industry group so far this year.

According to Jeff Krimmel, owner of Krimmel Strategy Group, this is no ordinary momentum-driven rally.

The move reflects a structural re-rating of oil-related equities that could reshape capital flows and investment priorities for the next decade.

“Oilfield services is recovering from a prolonged period of acute investor bearishness,” Krimmel said in exclusive interview with Benzinga on Wednesday.

Why The Investor Rush In Oil Services Stocks?

The rotation is dramatic.

While the SPDR S&P 500 ETF Trust (NYSE:SPY) has barely moved in 2026, the OIH ETF has soared on broad strength across its top constituents.

The top five holdings—SLB (NYSE:SLB), Baker Hughes Co. (NASDAQ:BKR), Halliburton Co. (NYSE:HAL), TechnipFMC Plc (NYSE:FTI) and Tenaris S.A. (NYSE:TS)—are each up between 20% and 30% year to date.

That performance contrasts sharply with the iShares Expanded Tech-Software ETF (NYSE:IGV), which is firmly in the red as investors rotate out of growth and into value-linked energy plays.

Year to date, oil services stocks have outpaced software by nearly 60 percentage points, pushing their relative performance ratio to its highest level since November 2023.

Krimmel believes the performance of OIH is not a flash in the pan, but rather an inflection point.

“The accumulating strength in oilfield services is much less appreciated, and arguably is a more important signal of how global energy systems are expected to evolve over the next five to 10 years,” he said.

What's Driving The Oil Services Rally?

Krimmel noted that this rally is not just about oil prices stabilizing. Each company in the sector is benefiting from unique catalysts:

• SLB is seeing rapid growth in its digital segment, giving investors a new reason to buy beyond its core drilling operations.
• Baker Hughes Co. continues to benefit from its strong industrial unit, particularly its exposure to liquefied natural gas and global power infrastructure.
• Halliburton Co. has maintained notable efficiency and is aggressively expanding its footprint through a collaboration with VoltaGrid to support data center infrastructure in the Eastern Hemisphere.
• TechnipFMC Plc and Tenaris S.A., with their focus on offshore projects, are well positioned as operators search for long-life, low-cost production opportunities amid global uncertainty.

"Investors have finally developed confidence that the sector has weathered the worst of the storm," Krimmel said.

"The tech and software retrenchment gets all the headlines, but the strength in oilfield services might end up being far more consequential for global energy."

What Comes Next?

With the first leg of the rotation well underway, attention now turns to whether these companies can convert operational momentum into sustainable earnings growth through 2026 and beyond.

For now, the message from markets is unequivocal: oilfield services are no longer forgotten—they’re leading.

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