Wednesday, September 11, 2013
3 Firms to Benefit from Mexican Energy Reform
As the Mexican government moves to reform the slumping energy industry, a whole slew of firms in the US stand to benefit. According to a Merrill Lynch report , analysts estimate that Mexico spent about $8 billion on drilling and completion (D&C) services in 2012 and expect that number to jump another $2.5 billion in the next two years.
Merrill Lynch lists a slew of stocks that will benefit from the hydrocarbon surge in Mexico. The firms include the typical large oil service and equipment providers, as well as offshore drilling specialists. Remember that a prime reason for the decline in oil output from Mexico has been a lack of expertise in drilling complicated offshore wells. While this might be a scenario where a rising ship raises all boats, a few stocks stand out to benefit the most.
Read the full article here.
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