Seeking Alpha

Transocean says it has a third of deepwater rigs seeking 2014 work

  • Transocean (RIG -3.4%) quantifies concerns about near-term slack in the demand for deepwater oil and gas drilling, telling analysts that 14 of its deepwater rigs would be available in 2014 out of a total of 39 industry-wide, both figures unusually high in a deepwater market where contracts can run for five years or more.
  • Near-term softness in demand for ultra-deepwater rigs is adversely impacting lower capability floaters, RIG says, but it expects excess capacity to be absorbed and maintains a favorable long-term view.
  • Among rivals, Ensco (ESV -1.7%) will have eight rigs available in 2014 and Seadrill (SDRL -0.2%) five, RIG says.
Comments (6)
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    SDRL is in a good position as it has the youngest fleet
    BUT
    a 100+% payout regime leaves it with virtually no margin of safety, a long voiced concern expressed by institutional investors.
    21 Nov 2013, 12:03 PM Reply Like
  • chopchop0
    , contributor
    Comments (3881) | Send Message
     
    Oil prices need to be sky-high for DW drilling to make sense. Not happening here.
    21 Nov 2013, 12:14 PM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    The deep pocket oil giants don't watch daily fluctuations in energy prices =
    For cap investments their horizon stretches out to 5 to 10 years.
    21 Nov 2013, 11:31 PM Reply Like
  • chopchop0
    , contributor
    Comments (3881) | Send Message
     
    "For cap investments their horizon stretches out to 5 to 10 years."

     

    I am sure they are taking into account huge domestic supplies that will be coming on board during that time and the possible impact on prices.
    22 Nov 2013, 09:23 AM Reply Like
  • jhawkinstx
    , contributor
    Comments (74) | Send Message
     
    You don't make commitment decisions for billions in capital for a ten year projector a three week movement in the price of oil.
    22 Nov 2013, 07:51 AM Reply Like
  • jhawkinstx
    , contributor
    Comments (74) | Send Message
     
    D@mn apple spell checker
    22 Nov 2013, 07:52 AM Reply Like
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