In the following video, the Fool's Austin Smith and analyst Jim Mueller discuss reasons to buy Seadrill. Jim first cites the rising day rates that oil companies are paying drillers to extract oil. Seadrill's day rate is higher than average. Second, oil companies must always be concerned about major blowout disasters, and since Seadrill's fleet is younger, mishaps are less likely to occur.
And finally, as oil prices remain high, demand for drilling the hard-to-reach oil is also high, since it's now economically feasible.