Ocean Frontier Economy
Derek Brown@derekbrown
−0.8%
since Oct 14
The idea
I believe the ocean is as underexplored and resource-rich as space, and over the next few years it becomes a place where real work gets done, from seabed mining to undersea cables to offshore energy. This basket only holds companies whose core business is at sea, anchored in undersea defense and subsea robotics, with smaller slices in seafloor resources, ocean energy, and offshore oil services, plus a cash buffer. I kept speculative names like seabed mining small since they have no sales yet, and I'd rethink this if ocean activity stalls rather than accelerates over a multi-year horizon.
What it owns
- Navies are expanding submarine fleets and seafloor protection systems, creating steady long-term spending on undersea military capabilities. · Huntington Ingalls IndustriesIt builds submarines and unmanned undersea vehicles for the Navy, capturing spending as submarine fleet expansion and undersea drone programs accelerate., BWX TechnologiesIt manufactures the nuclear reactors that power every Navy submarine and aircraft carrier, profiting when the undersea fleet grows.28%
- Deep-ocean work from mining surveys to cable repair to military operations all require underwater robots and specialized gear to get the job done. · Oceaneering InternationalIt makes underwater robots and subsea equipment that work across military, energy and seabed projects, making it a broad play on growing demand for underwater work.19%
- The seabed holds valuable metals like nickel and cobalt, while seawater itself becomes a resource when converted to drinking water at scale. · Energy RecoveryIt makes devices that reduce the energy cost of converting seawater into drinking water, winning contracts as large desalination plants choose its technology., TMC the metals companyIt is pursuing the first US commercial permit for seafloor mining of battery metals, positioning itself to profit if the regulatory path stays open and mining begins.16%
- Wind and wave power at sea are growing sources of electricity, and companies that build the infrastructure or harness the waves directly profit from that expansion. · CadelerIt owns specialized ships that install offshore wind turbines, earning revenue each time ocean wind farms are built and its vessels are contracted., Eco Wave Power GlobalIt generates electricity directly from ocean waves through floating platforms, profiting as wave power projects move from pilot stage toward commercial operation.15%
- Oil and gas development in deep water still drives the majority of ocean-based work and spending today, so this slice keeps the take anchored to current activity. · TechnipFMCIt builds subsea equipment and systems that produce offshore oil and gas from the seafloor, earning revenue as deepwater projects get approved and installed., TidewaterIt operates the largest fleet of supply ships that support offshore platforms, earning day rates as offshore activity keeps its vessels busy and demand stays strong.13%
- Cash10%