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

23 Trillion Reasons to Invest in These

Energy “Pick-and-Shovel” Providers

Photo credit: FMC Technologies

According to the International Energy Agency, the world needs to invest $48

trillion to meet our energy needs by 2035.

Of that amount, $23 trillion will need to be spent on

fossil fuel extraction, transportation, and refining.

That represents a massive market opportunity for a

black-gold rush.

That black-gold rush represents a huge

opportunity for modern-day energy “pick-and-shovel”

companies …

… which will supply the industry with the tools it

needs to find and extract oil and gas.

Here are three excellent “pick-and-shovel” suppliers that are well positioned to profit from the $23 trillion

spent on oil and gas.

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

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.

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

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.

Transocean (NYSE: RIG)

Transocean is a leading global provider of offshore contract drilling services.

Photo credit: Transocean

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 midwaterfloaters.

• Massive revenue backlog of $26.1 billion that extends well into the next decade.

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

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