Judging by the share price droop of drillers like Nabors Industries
The reality is far different. Orders for newbuild rigs keep piling in. Contract awards keep running longer, and at higher dayrates. Even the Big Oil-bashing party in Congress proposed some offshore drilling measures this week. Drilling is still in, my Foolish friends.
There were a few notable deals this week.
First, contractor/manufacturer Rowan
EnCana's rig request -- with all five sporting three-year contracts -- reinforces what we've seen elsewhere, namely the torrent of orders over at horizontal hotshot Helmerich & Payne
Things remain buoyant offshore as well. Pride International
Given the obvious strength in both rates and demand for new rigs, I believe that recent market weakness has presented some real bargains among the contract drillers.