Wall Street has been punishing the offshore drilling market as of late, saying there's too much supply and demand will not pick up fast enough to absorb it. Transocean (NYSE: RIG ) and Ensco (NYSE: ESV ) are among those who have been hit by this news, but is it really all that bad?
In this video, Fool contributor Tyler Crowe and energy and materials analyst Joel South talk about whether this is a Chicken Little situation. They also discuss the upsides of the likes of Transocean (NYSE: NBL ) and Hercules Offshore (NASDAQ: HERO ) that have seen a huge uptick in dayrates, which is currently outweighing concerns about aging rig fleets.
Three stock picks to ride America's energy bonanza
Record oil and natural gas production 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 look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.