Erin Burnett talked with Tom Petrie on “Street Signs” today. He’s a vice chairman at Merrill Lynch. He says the geopolitics of energy today will keep the market strong for the rest of this decade and beyond. Also, the need to develop more resources and the infrastructure necessary to harness them will give a boost to companies like Halliburton and Schlumberger.
Petrie says investment in energy “still makes sense” because demand from India and China will continue to grow. And 2007 should bring a return to the M&A activity the sector saw for most of 2004 and 2005. “Consolidation is an integral part of this industry,” he says.