• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 4 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 3 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 1 day Gazprom Exports to EU Hit Record
  • 8 hours Oil prices going down
  • 11 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Oil Buyers Club
  • 2 days Why is permian oil "locked in" when refineries abound?
  • 10 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 2 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 8 hours Saudi Arabia turns to solar
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 10 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days EVs Could Help Coal Demand
  • 3 hours Are Electric Vehicles Really Better For The Environment?
Alt Text

Who Gets Hold Of Russia’s Key Oil Hub?

25 percent of the Novorossiysk…

Alt Text

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

The United States has overtaken…

Michael McDonald

Michael McDonald

Michael is an assistant professor of finance and a frequent consultant to companies regarding capital structure decisions and investments. He holds a PhD in finance…

More Info

Trending Discussions

Deepwater Looks At Long And Difficult Recovery

As investors look to position themselves to take advantage of the new normal with oil prices, there is a lot of consternation about which sectors have the best and worst positioning. Unconventional players like Apache, Devon, Parsley, and other all have shown greater resilience than many expected at the onset of the Crisis. That area of the industry looks poised to do well if oil prices stay in the $50 region. Stock prices are recovering for these firms, and many are expecting earnings to follow suit over the next year.

In contrast, sentiment could hardly be more negative in the deep water drilling sector. Nearly every sell side analyst is at best tepid on the prospects in the deep water drilling sector. While many other sectors in the energy industry have recovered some of their stock’s slump, deep water drilling remains moribund. Against this backdrop, some contrarian investors see an opportunity. Yet the deep water sector only makes sense for those with ample patience.

The deep water sector has seen a drop that is unparalleled in the oil sector. Top tier players like Noble Energy, Transocean, and Ensco are all down 80%. Noble is trading at $6 a share down from ~$35 in late 2013. Ensco is at $7.50 down from $55, and Transocean is around $10 down from $50. Already offshore firms like Paragon, Vantage, and Hercules Offshore have all run into problems requiring restructuring or bankruptcy. Reports last fall suggested that larger firms like Transocean might…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News