• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours In a Nutshell...
  • 4 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 37 mins Is OilPrice a cover for Green Propganda
  • 5 hours Putin Paid Militants to Kill US Troops
  • 49 mins Why Wind is pitiful for most regions on earth
  • 2 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 1 day Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 20 hours Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 22 hours Happy 4th of July!
  • 3 hours Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 20 hours Apology Accepted!
  • 2 days The Political Genius of Donald Trump
  • 3 days Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
Lithium Prices Are Set To Rally

Lithium Prices Are Set To Rally

The European Union’s green recovery…

Why Power Companies Can’t Ditch Coal Just Yet

Why Power Companies Can’t Ditch Coal Just Yet

The electric industry’s decarbonization program…

The Oil Rally Has Stalled Once Again

The Oil Rally Has Stalled Once Again

Oil prices rallied once again…

Editorial Dept

Editorial Dept

More Info

Premium Content

Is It Time To Invest In Offshore?

After years of neglect due to low oil prices, oil companies are again beginning to devote capex to the offshore, and deepwater sectors. They are able to do this for two reasons.

- Retooled project portfolios with breakeven costs in the $30-40 range.

- New technology cutting well drilling and completion time by as much as 50%, meaning rig days charged to a well have been cut by half.

This is having an effect on the supply of ready-to-work offshore drilling units as Kurt Hallead, of RBC capital markets recently noted. He sees it as a positive sign of change that companies are starting to reactivate stacked units to meet demand.

“If there were ample supply, an oil company would wait for an active rig to become available rather than contracting one that’s been sitting on a beach for two years.”

Given this fact, I thought it was time to take a look at the offshore deepwater drilling sector for investing opportunities, and recently established a long position in Transocean. Here is a closer look at the fundamentals I believe will drive them higher in the coming months.

Ownership Thesis for Transocean

Transocean, (NYSE: RIG) is solely focused on servicing the deep, (DW) and ultra-deepwater, (UDW) market segments of the offshore drilling sector, (OSD). In the past few years, for reasons well known to market participants, this has meant that the company has struggled to generate adequate returns, and the stock price has suffered…





Leave a comment

Leave a comment




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