Judy,
I went back to read it again - Doug is talking about land drillers - Judy, there are land drillers/ shallow water drillers/ and deepwater drillers - they are all different animals - although they tend to move in tendum in the market.
Actually most views are land drillers will now catch on as the deep water drillers are the first group to reap the benefits, followed by shallow water, and now the laggard of the group, that is the land drillers will start to see the surge of rates too.
land drillers : UTI, NBR, are the bigger ones. check UTI's price action, it probably has appreciated more than CDG.
Their primary operation areas are West/Central Texas, New Mexico, and Midcontinen (Rockies)
I am bias to deepwater drillers as this group does business worldwide.
even CDG now is drilling outside Venezuela.
To build a land drilling rig, it costs around 10 millions. To build a shallow water drilling rig, it costs upward of 100 millions. To build a deepwater jackup, it costs upward of 200 millions. To build a semisubmersible (deepwater), it costs upward of 300 millions.
Just to give an idea that there are vast difference among land/shallow water/ deepwater business. |
