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This Company Is Getting Ready to Rule Offshore Oil

Of all the offshore rig companies out there, no one is as aggressive as Seadrill (NYSE: SDRL  ) in building out for the future. The company currently has enough rigs, drillships, and semi-submersibles under construction to expand its current fleet by almost 40% in the next couple of years. Also, with one of the youngest fleets of rigs, and a large share of the equipment used for ultra-deepwater exploration, the company is looking to make a big splash in the next several years.

One big region to keep an eye on is the pre-salt formation of Brazil. Auctions for this lucrative field are expected later this year, and Seadrill already has a working relationship with Petrobras (NYSE: PBR  ) , with three rigs already offshore Brazil. Since Petrobras has a government-mandated 30% operator stake in every well in this new region, having a solid working relationship could mean very good things for Seadrill in the future. Tune into the video below where contributor Tyler Crowe discusses some other promising regions that could offer big gains for Seadrill. He also wonders why its competitors are not yet putting up a big fight: Can they move fast enough to keep up with Seadrill's ambitious plans?

The energy space is awash with exciting companies and opportunities for investors, but don't get caught up in hype without doing your homework to make sure the picks you make will stand the test of time. Let us help you get started with your analysis by checking out our special free report: "The Motley Fool's Top Stock for 2013". Discover why our chief investment officer has named this company his pick of the year by simply clicking here.

Read/Post Comments (2) | Recommend This Article (3)

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  • Report this Comment On July 19, 2013, at 4:23 PM, DukeMontrose wrote:

    Do you say SDRL is "getting READY to rule" ?

    +++ It ALREADY rules.+++

    On top of the new units coming on stream you discuss so well, we have at least two subsidiaries, 1 already listed on NYSE,+ another preparing to be listed. Close connections in Asia + a toe-hold in Brazil add further versatility. Which is important.

    Versatility/flexibility allows our Chief Executive JF to move with entrepreneurial speed when an opportunity does arise on the seven seas =

    which we all know occupy much more space than land on our planet.

    To be King of the Seas is a sweet spot to be in.

    Maritime shades of landlubber IBM?

  • Report this Comment On July 29, 2013, at 12:56 AM, ducky009 wrote:

    Good, report, but a bit lopsided. You talk about competitors not moving quick enough, and specifically mention Diamond Offhsore (DO). DO has 12 Ultra Deep rigs (4 in Brazil) where as SDRL has 14 currently in operation (3 in Brazil), with 2 more under construction.

    The reality is, the demand for oil is not going away any time soon, so there is a need for drill ships, and therefore room for everybody. If you got a working drill ship, there is someone out there that wants to use it. So long as the price of oil stays high, drilling for oil will continue.

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