Offshore is the last great frontier in the oil business, the only undiscovered country out there, unless you think there’s oil on the moon. The trouble with going offshore is that it’s incredibly expensive and ridiculously hard to do. There are a handful of firms in the world with the engineering know-how to find and produce oil from the depths of the sea. You reckon business will be good for them in the coming years?
While we’re on the subject of oil services and production, it’s a good time mention a stock that’s rarely discussed in polite company anymore, Halliburton (NYSE:HAL). It’s a stock everyone loves to hate, or, if you are a practical investor, a stock you might hate to love.
Halliburton is hated because it’s Dick Cheney’s old company. It’s also perceived as being a war-time profiteer, which may or may not be true. Advocates of so-called “ethical investing” are morally outraged that anyone would buy, much less profit, from a company like Halliburton.