This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.
Due to the decline in Mexico's energy production, the government has decided to allow foreign oil companies to team up with state-owned Pemex to help right the ship. Not everyone in the country is on board, however. Motley Fool analyst Taylor Muckerman believes that Mexico and Pemex could learn a lot from how Brazil and Petrobras (NYSE: PBR ) have handled auctions in the past considering the intimate ties between the government and its national oil company. He also believes that a more sure way to play this news from an investor's standpoint is to invest with service companies. He highlights Ensco (NYSE: ESV ) and Hercules Offshore (NASDAQ: HERO ) . Find out why in the video below.
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!