By all indications, it looks like oil drilling is back to normal and rig owners are raking in cash again. A year after the Deepwater Horizon oil spill affected drilling in the Gulf of Mexico and turned the industry on its head, business has returned.
During the third quarter, Noble
The company is also expanding capabilities to meet demand for deepwater rigs. Options for two high-specification jackup rigs were exercised and another ultra-deepwater drillship was ordered from Hyundai Heavy Industries during the quarter. Rig owners like Noble, SeaDrill
Rinse and repeat
The improvements at Noble were echoed at Diamond Offshore
It's all about the oil
The only problem I see with oil drillers right now is the relatively low price of oil. Today oil is trading around $85/barrel, a far cry from a few months ago when oil traded above $110/barrel. For this industry to maintain its growth, oil prices need to at least stop their decline of the past few months. If that happens or oil begins to rise, as I've predicted, I think oil drillers are in a perfect position to capture even more business.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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