The Deepwater Distinction
Now, one could simply pile into the usual energy giants, but I think that’s a rather blunt approach. To me, the more interesting play is one step removed from the source of the tension. I’m talking about the companies with the big drills, the ones operating far from the world’s trouble spots in the deep, dark waters of the ocean. These offshore specialists aren’t directly in the line of fire, but they could be in a prime position to benefit.
When traditional supply routes look shaky, the world’s energy producers get a sudden urge to explore elsewhere. Those hugely expensive deepwater projects, once considered marginal, might start to look rather appealing. This, in turn, could drive up the demand for the highly specialised rigs and expertise offered by firms like Transocean or Noble Corp. They don’t own the oil, you see. They simply rent out their very expensive kit for a handsome daily fee.