In its latest fleet status update, deepwater titan Transocean
The firm has stacked (i.e., de-crewed and stopped actively marketing) four more jackup rigs. Two are standard jackups now sitting in Malaysia, the GSF Adriatic XI and the GSF Rig 136. It's interesting that both went from contract work to stacked, with no idle time in between.
The other two stacked jackups are so-called "high-specification" rigs -- meaning they have all the bells and whistles an operator could wish for. The GSF Galaxy I had been working for BP
The weakness evident in shallow water markets not only in the Gulf of Mexico, but around the world, reaffirms my belief that drillers like Hercules Offshore
Of course, the shaky demand doesn't end there. Also reported in Transocean's update was the stacking of a few midwater floaters. This is the next step up the totem pole in terms of water depth (1,000 to 4,000 feet) and drilling complexity.
The Sedco 700 had been plugging away for Total SA
The market for contract drilling now looks more bifurcated than ever. For my recent peek at deepwater demand, which continues to look robust, click on over here. And if you disagree with my assessment or think I've missed anything, drop me a line in the comment section below.
Fool contributor Toby Shute doesn't have a position in any company mentioned. Check out his CAPS profile or follow his articles using Twitter or RSS. Total is an Income Investor pick. The Motley Fool has a disclosure policy.