Big oil companies have been moving their crews around the globe much like game pieces in the board game "Risk". And risk is certainly the name of the game in the oil space as well. Companies like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) are pushing the boundaries of what has been tested in the past. Crews are moving to harsher environments and rougher waters in search of reserve replacements.
Arctic and offshore drilling, once pipe dreams in the energy world, are quickly becoming the norm. Royal Dutch Shell (NYSE:RDS-A) has identified 14 offshore areas in which it has plans for exploration. Because of this, existing rigs will need to be updated with newer capabilities and outfitted for increased safety. That's why a company like National Oilwell Varco (NYSE:NOV) could be in for a big payday since it is in the business of retrofitting rigs both onshore and offshore. Warren Buffett clearly believes in this company. Maybe you should too.
Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Chevron and National Oilwell Varco. The Motley Fool owns shares of National Oilwell Varco. 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.