Technip, a French oilfield services company, is contemplating a collaboration with FMC Technologies to bring energy prices down in the oil services sector. Both companies have been seeking better savings options and synergies to boost profit.
Technip and FMC Technologies Have Market Capital of $5.8 Billion and $6.8 Billion
Associated parties have revealed that Technip has been in talks with other buyers. This is evidenced by the company’s sudden rise in the stocks, going up by as much as 10% in New York after news of the collaboration first broke out.
Earlier in 2015, the two companies formed Forsys Subsea, which aims to bring down the cost of subsea oilfield exploration. The drop in oil prices have impacted this market significantly, and the company hopes to find solutions so that all parties are benefited. There’s very little information on what this current collaboration will bring, but it will also likely be of benefit to the oil services industry.
Is Oil Even That Important Anymore?
With the world that’s being encouraged and almost demanded to become greener, there should be little space for the use of fossil fuels. Global warming is the single most relevant man-made problem of the time, and most politicians and governments are working on peaking emissions to bring them down as much as physically possible. This collaboration may bring some immediate solutions for the short term use of energy, but soon enough, it’s likely that stocks will drop for both companies as clean energy takes over all markets.
There’s simply no place for industries that use fossil fuels, at least not if they’re looking to get the favor of investors. Clean energy will soon become the next trend, and companies are already preparing for it in a lot of different industries. FMC Technologies and Technip will hopefully jump on that train as well.
