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

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 such as National Oilwell Varco, FMC Technologies and Transocean very busy in the coming decades.

Jun 29, 2014 at 12:00PM


Photo credit: FMC Technologies  

According to the International Energy Agency, the world needs to invest $48 trillion by 2035 to meet its energy needs. Of that amount, $23 trillion will need to be invested to help offset current energy supplies as oil and gas wells deplete, as well as to add new energy supplies to help meet the demand for energy in emerging nations. It's a super-trend that deserves to have a place in nearly every portfolio. While oil and gas producers are one way to profit from this trend, equipment and service companies such as National Oilwell Varco (NYSE:NOV), FMC Technologies (NYSE:FTI) and Transocean (NYSE:RIG) offer a less risky "pick-and-shovel" profit opportunity for investors.

National Oilwell Varco has basically become the main equipment supplier of the energy industry. It has equipment on nearly every drilling rig around the world. In fact, its wares are so prevalent that many in the industry refer to NOV as "No Other Vendor," because no one else supplies the industry to the degree of National Oilwell Varco.

Further, with the bulk of the easy oil gone, energy producers are tapping deepwater sources for new production. Not only is it a trend that will benefit National Oilwell Varco, but it also plays right into the hands of the core businesses of FMC Technologies and Transocean. Investors can profit from the drilling of these deepwater wells with Transocean, while FMC Technologies will yield profits as it is a leading supplier of key subsea technologies that work at getting the oil and gas from the ocean floor to the surface.

To help investors gain a better understanding of how these three companies will profit from the spending of $23 trillion on fossil fuel development, I created the following slideshow presentation. The presentation profiles all three companies and shows how each will profit as the world spends trillions to meet its energy needs in the decades ahead.

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Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends FMC Technologies and National Oilwell Varco and owns shares of National Oilwell Varco and Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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