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We Have Only Seen the Beginning of the Rig Industry Boom

The practice of long-term buy and hold investing has proven to be the most effective method to grow your investments. In a cyclical industry like rig companies, however, it can be difficult to see beyond a time horizon of three to five years. Luckily for us, Ensco (NYSE: ESV  ) CEO Daniel Rabun provided some tidbits on a recent conference call that could help shape an investment thesis. While Petrobras (NYSE: PBR  ) and Statoil (NYSE: STO  ) will be the two largest offshore spenders over the next several years, with $380 billion in offshore capital spending over the next couple of yeaars. Rabun sees the rig market remaining strong well past the end of this decade.  

So what will be the driver further down the road? The Arctic. With just ExxonMobil (NYSE: XOM  ) and its partners Rosneft planning to spend $500 billion to explore the Arctic in pursuit of the largest oil deposits in the world not yet proven, it will provide a major boost for the rig industry. Find out why both Ensco and Seadrill (NYSE: ESV  ) are very well suited to excel as the global markets turn North by tuning into the video below.

An energy giant set to lead
Advanced technology in the offshore exploration has been a critical cog in transitioning the global oil market away from the traditional centers of power. Of all the companies that are giving OPEC headaches, this one behind-the-scenes energy giant is at the heart of this transition. We have put together a brand-new Motley Fool special report that goes into depth about the company we're calling OPEC's Worst Nightmare. Simply click here and we'll give you access to this valuable report that unveils the name of this industry leader.

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  • Report this Comment On November 02, 2013, at 11:49 PM, Suradit wrote:

    Ensco (NYSE: ESV )

    Seadrill (NYSE: ESV )

    They probably don't use the same symbol.

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Related Tickers

9/28/2016 4:00 PM
ESV $8.15 Up +0.89 +12.26%
Ensco CAPS Rating: *****
PBR $9.50 Up +0.44 +4.86%
Petroleo Brasileir… CAPS Rating: **
SDRL $2.31 Up +0.38 +19.69%
Seadrill CAPS Rating: ***
STO $16.08 Up +0.74 +4.82%
Statoil CAPS Rating: ****
XOM $86.90 Up +3.66 +4.40%
ExxonMobil CAPS Rating: ****