My favourite long-term bet on oil
Shares of this company collapsed from $90 to under $45 in 2010, but today are beginning to gain momentum. Its stock is also trading at just 11 times earnings.
No one knows where oil is going to be 18 months from now. But that doesn't stop people from guessing...
According to the U.S. Department of Energy, crude prices will average over $100 a barrel for the next two years. Research firms Merrill Lynch and Goldman Sachs see crude prices pushing through the $120 mark by 2013.
I take forecasts in this industry with a grain of salt. After all, Goldman called for $200 oil prices in 2008. After touching $150, prices collapsed below $50 a barrel about six months later.
Even without knowing exactly where oil will trade over the next few years, the long term looks good for one "picks and shovels" energy stock...
Transocean (NYSE: RIG, Stock Forum) is the largest offshore driller in the world. Two years ago, one of its deepwater rigs caught fire in the Gulf of Mexico. This caused one of the largest offshore oil spills in history.
Continue reading this article here.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.