23 Trillion Reasons to Invest in These Energy “Pick-and-Shovel” Providers

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The International Energy Agency’s latest report suggests the world will need to invest $48 trillion by 2035 to meet the world’s energy needs. That will keep companies like National Oilwell Varco, FMC Technologies and Transocean very busy in the coming decades.

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  • http://www.iea.org/media/140603_WEOinvestment_Factsheets.pdf
  • http://www.iea.org/media/140603_WEOinvestment_Factsheets.pdf
  • http://www.iea.org/media/140603_WEOinvestment_Factsheets.pdf
  • http://www.iea.org/media/140603_WEOinvestment_Factsheets.pdf
  • http://www.iea.org/media/140603_WEOinvestment_Factsheets.pdf
  • http://www.iea.org/media/140603_WEOinvestment_Factsheets.pdf
  • http://www.nov.com/home.aspx?langtype=1033 and https://www.flickr.com/photos/paxson_woelber/9840005175/in/photolist-fZwAHD-4Qotu7-yvKp2-8kjqMq-bohM6C-6HpMDu-8sDNGA-yvKn5-f7ifV-iwkGaE-4QoGfS-8gXXKS-9VunqS-eDXczW-eDR5rT-4QoC1L-4Qou1U-6M3uWa-aPqRnP-4QoA7q-4QjsBB-4QjeR4-4QjmyP-4Qjo5e-4QoBvQ-4Qoxbo-4QjdpK-4QjkFK-4Qov4C-4Qjn5g-4Qouxu-4QoyFh-4QoxGE-4Qjt6g-4Qjiy6-4QjpXr-4QowD7-4Qot2G-4Qjr1H-4QorAG-4QjrAr-6M3zeK-6M3eVp-6M3xbT-6M7BWE-6M7w6Q-6M3cZg-6M3hxH-6M7yB7-6M3jPi
  • http://seekingalpha.com/article/2170163-national-oilwell-varcos-q1-2014-results-earnings-call-transcript?part=single
  • http://www.fmctechnologies.com/en/NewsandMedia/Mediaresources2/Imagegallery.aspx and http://www.fmctechnologies.com/AboutUs.aspx
  • http://files.shareholder.com/downloads/FMC/3238735516x0x749169/BB6F5627-15AE-48C4-8EAE-64BCA325A154/IR_Book_-_2Q_14.pdf
  • http://www.deepwater.com/investor-relations/news
  • file:///C:/Users/Owner/Downloads/AGM%202014%20FINAL.PDF
  • 23 Trillion Reasons to Invest in These Energy “Pick-and-Shovel” Providers

    1. 1. 23 Trillion Reasons to Invest in These Energy “Pick-and-Shovel” Providers Photo credit: FMC Technologies
    2. 2. According to the International Energy Agency, the world needs to invest $48 trillion to meet our energy needs by 2035.
    3. 3. Of that amount, $23 trillion will need to be spent on fossil fuel extraction, transportation, and refining.
    4. 4. That represents a massive market opportunity for a black-gold rush.
    5. 5. That black-gold rush represents a huge opportunity for modern-day energy “pick-and-shovel” companies …
    6. 6. … which will supply the industry with the tools it needs to find and extract oil and gas.
    7. 7. Here are three excellent “pick-and-shovel” suppliers that are well positioned to profit from the $23 trillion spent on oil and gas.
    8. 8. National Oilwell Varco (NYSE: NOV) National Oilwell Varco is a global leader in selling equipment and components to the oil and gas industry. Photo credit: Flickr/Paxson Woelber
    9. 9. National Oilwell Varco Position in the industry: • More than 800 worldwide manufacturing, sales and services centers. • Well positioned to profit from supplying four major trends: • Buildout of deepwater rig fleets. • Buildout of floating production systems to produce deepwater discoveries. • The retooling and replacement of jackup fleets. • Growth of unconventional shale technologies.
    10. 10. FMC Technologies (NYSE: FTI) FMC Technologies is a leading global provider of technology solutions for the energy industry, with a focus on subsea technologies. Photo credit: FMC Technologies
    11. 11. FMC Technologies Position in the industry: • 43% market share in subsea systems. • More than double its nearest competitor. • Responsible for 66% of FMC Technologies’ revenue. • Strong customer relationships that will yield visible growth for the next five years. • Growing its surface-technologies business to focus on shale development.
    12. 12. Transocean (NYSE: RIG) Transocean is a leading global provider of offshore contract drilling services. Photo credit: Transocean
    13. 13. Transocean Position in the industry: • Premier position in the ultra-deepwater market. • Position continues to strengthen through its new- build program that’s adding 14 additional high specification vessels. • Largest fleet of high specification and midwater floaters. • Massive revenue backlog of $26.1 billion that extends well into the next decade.
    14. 14. Investor takeaway: With $23 trillion being spent to supply the world with energy through 2035, there will be endless profit opportunities for “pick-and-shovel” companies such as National Oilwell Varco, FMC Technologies, and Transocean. Photo credit: Transocean
    15. 15. OPEC’s Worst Nightmare.

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