Offshore Drilling Will Change, And That's Good For Cameron

I realize that some people will refuse to see any good whatsoever come from the BP (NYSE:BP) Gulf of Mexico oil spill, but there is a longer-term view to consider. The realities of our energy needs mean that there will be ongoing drilling for oil, and much of that drilling will take place offshore in the coming years. In response to the spill, though, I expect to see more stringent regulations and higher retooling/retrofit demand, and that should be a boon to Cameron (NYSE:CAM) for years to come.

Cameron is one of the leaders in equipment for the oil and gas industry - specializing in products like compressors, valves, "Christmas trees" (assemblies of valves, spools, and fittings that control the flow of petroleum from a well) and blow-out preventors (BOP). While the failure of Cameron's BOP onboard Transocean's (NYSE:RIG) rig in the Gulf did play a role in the oil spill, nobody appears to be implicating Cameron for faulty design or construction, and it looks as though Cameron is in place to maintain its near 50% share of the BOP market.

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