Ongoing troubles in the eurozone, slowing growth in China, and a struggling economy in the U.S. have led to a 20% drop in oil prices over the past three months. The stock prices of many energy companies have come down even more, creating bargains in some well-managed names that should see their stocks rebound sharply on even a modest recovery in oil prices.
In today's video, Matt and Paul discuss one offshore drilling contractor that looks particularly compelling right now. With cheap sources of oil becoming harder and harder to find, corporations and governments are looking increasingly offshore for their energy needs. Today's company is growing its rig fleet by 60% over the next two years to prosper on that trend.
Matthew Argersinger and Paul Chi have no positions in the stocks mentioned above. The Motley Fool owns shares of Atwood Oceanics, Ensco, Transocean, and Seadrill. Motley Fool newsletter services recommend Atwood Oceanics and Seadrill. 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.