Are Deepwater Drillers in Decline?

Ultra-deepwater drilling leaders Seadrill (NYSE: SDRL  ) and Transocean (NYSE: RIG  ) have been on the decline this year after competitor Noble (NYSE: NE  ) made less-than-enthusiastic predictions about the drilling market in early 2014. During earnings, management said that early 2014 would see weak demand, bringing up fears that the deepwater drilling market may eventually become oversupplied as new rigs come online. 

But if we take a longer view, all three of these companies sign contracts that extend for years and more than half of the world's new reserves are now coming from deepwater. Even Noble's long-term comments weren't as bearish as the stocks have been this year. 

Mike Klesta sat down with Fool contributor Travis Hoium to see what to make of drilling earnings so far this year and whether we should bail on ultra-deepwater drillers. 

Find the winners in the domestic energy boom
Record oil and natural gas production is on land and offshore is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2828895, ~/Articles/ArticleHandler.aspx, 9/4/2015 7:31:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated Moments ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:00 PM
NE $12.30 Down -0.40 -3.15%
Noble Corp CAPS Rating: ****
RIG $13.45 Up +0.07 +0.52%
Transocean CAPS Rating: ***
SDRL $7.10 Down -0.16 -2.20%
Seadrill CAPS Rating: ****