Wall Street has been punishing the offshore drilling market as of late, saying there's too much supply and demand will not pick up fast enough to absorb it. Transocean (NYSE:RIG) and Ensco (NYSE:ESV) are among those who have been hit by this news, but is it really all that bad?

In this video, Fool contributor Tyler Crowe and energy and materials analyst Joel South talk about whether this is a Chicken Little situation. They also discuss the upsides of the likes of Transocean (NYSE:NBL) and Hercules Offshore (UNKNOWN:HERO.DL) that have seen a huge uptick in dayrates, which is currently outweighing concerns about aging rig fleets.