However, it’s worth noting that the amount of growth the top 5 oil companies have been able to generate has been almost negative while their spending has been higher than it’s ever been. I think the trend will accelerate.
Is any piece of the energy industry poised for prosperity?
I think the equipment group could be in for an enormous amount of growth, because assets are old and rusty, replies Simmons. I think they need to rebuild the whole industry or we will have the indignity of oil supplies going down because we just let the system rust. I think we’re at a real turning point.
Are there specific companies that are well positioned to benefit?
I don’t know the engineering companies that well, but the ones that have the best access to good people should do well. Investors will have to pick and choose.
What’s the trade?
I like Jacobs Engineering says Guy Adami, as well as Flowserve .
> Find out what Jon Najarian anticipates hearing from Exxon Mobil and Chevron when they report earnings.
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Trader disclosure: On Jan 31, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (EMC), (INTC), (ATVI); Najarian Owns (BR), (C), (CSCO), (EMC), (MS), (MSFT), (YRCW); Najarian Owns (EBAY) Calls, (CMC) Calls, (GOOG) Calls, (YHOO) Calls; Finerman Owns (GS); Finerman's Firm Owns (PZN), (TSO), (VLO), (YHOO), (BR); Finerman's Firm And Finerman Own (CROX); Finerman's Firm Is Short (SPY), (IYR), (IJR), (MDY), (CME), (WFC), (COF); Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts