Plus: Hurricane season is acoming, Libya is a mess, the Gulf States need to buy-off social unrest and fast. Come the Fall then the evenings will start to draw in for another Winter. Lots of factors at play in the energy sector, and all of which can benefit FMC Tech. How?
a) Sub-sea processing facilities are unaffected by hurricanes.
b) Securing hyrocarbon supplies in deeper water away from the Middle East requires subsea facilities.
c)Renewables will take a long time to develop and replace hydrocarbons. Oil and gas, at whatever price, will be heating homes, offices and factories this Winter and for many years to come.
Looks like Zacks were on the money with their report. The recent Statoil deal is good news. The UK gov tax raid on Brit UKCS companies is bad news and just plain stupid. Though in the long term it may benefit FMC, as the relentless destruction of unmaintained hardware at marginal depleted reservoirs will eventually require significant reinvestment. But real oil prices will have to go way higher to justify this. Quite possibly other areas will be productive by that time (using FMC tech), so we will all make money anyway, and peak-oil, just like the Greek debt, will be kicked down the road a while longer.
The Macondo fall-out is unwinding, bit by bit. Once the financial "unknown, unknowns" get known in terms of possible liabilities, then the M&A fairy will come to visit.
Will FMC eat or be eaten?
Discuss, expand or amplify.
Very quite board here... I should probably double my holding before howling pumpers/dumpers pile in.
Regards to anyone smart enough to hold this stock.