With recent discussions around the ramifications of deep-sea mining, global governments are weighing the pros and cons of ocean-bound resources. Though the risks for marine ecosystems are significant, the first underwater mining companies are set to begin excavation in 2025. With current deep-sea resource-extracting companies turning to artificial intelligence (AI), a new nexus of AI ocean exploration stocks has formed.
While metal extraction has yet to begin, offshore oil rigs also rely on novel AI applications for future deposit discoveries. Moreover, while the Biden administration has authorized a historically low number of offshore drilling leases, the 2024 election could reverse the trend. Should this reversal occur, offshore drilling companies could benefit from the same technological advancements as their mining counterparts.
As such, companies dedicated to marine resource exploration ventures via AI integration could provide a lucrative new investing opportunity. Here are three companies known for their ocean exploration that could see generous returns should marine extraction become greenlit.
Oceaneering International (OII)
With 60 years of deep-sea diving expertise, Oceaneering International (NYSE:OII) has the most pedigree of all AI ocean exploration stocks. The company provides engineered services for the offshore oil industry, undersea defense, and renewable energy sectors.
To leverage AI technology, OII has been installing it in their remotely operated vehicles for automating tasks. This approach also improves data collection and enhances decision-making capabilities during underwater operations. Furthermore, OII’s robust quarterly earnings report along with a healthy PE ratio of 23.76 bodes well for investors.
As the deep-sea resource industry ramps up, Oceaneering International could be the expert mining companies turn to for assistance. For OII stock, this would mean even more opportunity and company growth amongst already healthy progress in recent years.
Chevron (CVX)
A multinational energy giant in traditional oil extraction, Chevron’s (NYSE:CVX) early adoption of AI could help revolutionize its surveying methods. The company primarily utilizes AI for ocean mapping and data analysis to aid in responsible exploration and environmental monitoring efforts. Currently, CVX’s stock price sits below its all-time high, thus a significant catalyst could bring it back to its former glory.
Though the company saw a rough quarter at the end of FY23, its 4.22% dividend and relative price stability make it an attractive long-term investment. Chevron has also gone to great lengths to expand offshore drilling internationally, with a new Red Sea rig underway.
By tapping new regions such as the Red Sea and the coasts of Africa, Chevron is making a solid return on ocean exploration investment. Investors should keep an eye on CVX to see where a new U.S. president’s policies could take the company.
Equinor (EQNR)
From renewable energy to ocean floor exploration, Equinor (NYSE:EQNR)has one of the more illustrious statuses among offshore oil companies. Currently, the company employs AI for subsea data analysis to optimize oil extraction while minimizing environmental impact. Though originally the Norwegian state oil company, Equinor has invested heavily in renewable energy, with a growing wind energy portfolio.
This transition has made them the largest energy supplier to Europe in recent months Furthermore, by leveraging its expertise in offshore oil, the company became a leader in floating wind farms. These innovative wind farms operate in deep waters, which Equinor evaluates through research and exploration.
Equinor has also committed to developing carbon capture and storage technologies, to lower emissions and store carbon gases underground. All of these characteristics and adjusted earnings of $36.2 billion in 2023 have made EQNR a moderate buy among AI ocean exploration stocks.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
