Wednesday, March 5, 2014
SeaDrill: The Pause That Accelerates Demand
While Seadrill (NYSE: SDRL ) confirmed that exploration and production firms had recently cut back on capital spending budgets for 2014 due to escalating costs, the company actually sees a very positive scenario on the future outlook. Other deepwater drillers have speculated that the pause to drilling growth is needed for crews and suppliers to catch up with demand in order to refresh the market. Seadrill actually predicts the pause is greater undersupply of rigs by 2016.
Seadrill is a leading deepwater driller with a focus on aggressively building out new rigs for what it forecasts as a major undersupply in rigs by 2020. Ironically, fellow deepwater driller Transocean (NYSE: RIG ) expects a weak market yet recently ordered two ultra-deepwater drillships.
Read the full article here.
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