National-Oilwell Varco, Inc. (NOV), Chevron Corporation (CVX) & More: Our Uncertian Economy Can’t Crush Crude

Another peek at peak oil
All of this is reminiscent of M. King Hubbert. You may recall that in the past century Hubbert was a research geophysicst for Royal Dutch Shell plc (ADR) (NYSE:RDS.B), a University of Chicago Ph.D., who first said in 1956 that petroleum production, whether in a region or globally, tends to follow a bell-shaped curve. It thereby reaches a peak, from which it declines steadily. It’s a theory that, with the increases in U.S. unconventional crude production during recent years, we appear to have shelved for the time being. It’s unlikely to have breathed its last, however.

A few of the compelling companies
From my perspective, the message to be taken away from Stuart’s presentation is simply that, even in the face of potential U.S. economic distress, a well-structured portfolio will contain at least a modicum of energy of names. For starters I’d look to Schlumberger Limited. (NYSE:SLB), the world’s leading oilfield services company and energy’s technology major domo. Given its operations in about 85 countries, a worldwide energy cataclysm would seemingly be required for the big company to face a significant slowdown.

In addition, Houston-based National-Oilwell Varco, Inc. (NYSE:NOV) , a now sizable maker of equipment and components for drilling rigs, serves a crucial part of the energy business worldwide. Further, EOG Resources, Inc. (NYSE:EOG) is one of the truly “oily” independent producers, with prolific operations in the Eagle Ford and Bakken, among other locations.

And yesterday I described to Fools why I believe that Chevron Corporation (NYSE:CVX) constitutes the more compelling of the two remaining U.S.-based major oil and gas companies. My sentiments remain unchanged.

The article Our Uncertian Economy Can’t Crush Crude originally appeared on Fool.com.

Fool contributor David Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron Corporation (NYSE:CVX) and National Oilwell Varco and owns shares of National-Oilwell Varco, Inc. (NYSE:NOV).

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