Companhia Vale do Rio Doce
In the past, CVRD has generated power internally, via holdings in a number of hydroelectric plants. Still, that generation only accounted for a fraction of energy needs. To secure further supply, the firm is striking out on some natural gas exploration.
The company has announced that it will be teaming up with a Royal Dutch Shell
As the base metal giants get ever more gargantuan, they pose the potential to significantly shift their demand toward upstream energy assets. From where I sit, that looks like fantastic news for international drillers, from onshore players like Nabors Industries
In short, with more competition from non-traditional players, this incremental rig demand should ultimately lend support to dayrates and keep the drillers out of the doldrums.
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