The driving force behind the US oil boom

At over $100 million revenue, Aveda is the largest pure-play drill rig mover in the United States. Today its footprint covers over 80% of the rig-moving market, from Alberta all the way down to Texas.

"With over 2,000 active rigs operating across North America today, and an average rig being moved approximately 17 times per year, the rig-moving industry is set for phenomenal gains," Dave Werklund, Executive Chairman of Calgary-based Aveda Transportation and Energy Services told Oilprice.com.

This little known segment is actually a $2-billion niche in the services sector.

Once horizontal wells are drilled from a pad, the fully constructed rig has to be dismantled, moved to the next location using hydraulic walking or skidding systems, and then put back together.

Producers are demanding this work be done faster and safer than ever before. It's a service that continues to be in high demand.

The advent of pad drilling, which allows the drilling of multiple wells from a single pad, is also transforming the services industry from equipment design and leasing to the task of moving the larger loads from pad to pad.

"With the conversion to pad drilling in the US, the size and weight of the rigs have increased exponentially," says Werklund. That was a lucky break for Aveda, as they already had much bigger trucks in their fleet because of the bigger rigs their original Canadian customers used. As soon as they came down to the US, producers began using their services.

The general consensusis that American producers will not stop drilling even with an oil price of $80 per barrel. Instead, they're digging in.

The lesson for investors? While energy service stocks have seen a crushing six weeks-in tandem with oil prices-activity levels have not slowed.

Source: http://oilprice.com/Energy/Energy-General/The-Driving-Force-Behind-the-US-Oil-Boom.html