Large integrated oil companies are tightening their belts in 2014, with ExxonMobil (NYSE:XOM) and Royal Dutch Shell (NYSE:RDS-A) cutting capital expenditures after years of record spending. This has spooked investors in offshore drillers as dayrates plummet in deepwater vessels with 5,000 feet or less of drilling capabilities. While the market continues to punish the industry as a whole, investors can find solid investment opportunities in offshore drillers with new ships, which not only have outstanding utilization rates, but command more money to lease the vessel. Seadrill (NYSE:SDRL), with the newest fleet of deepwater rigs and an industry-leading dividend, is one name investors need to follow, especially if the market continues to discount the firm. 

This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Ensco. The Motley Fool recommends and owns shares of Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.