Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (31709)	8/6/2003 9:08:35 AM
From: Sharp_End_Of_Drill	Respond to of 36161

NSP, the problem of RIG is one of what may be shaping up to be a failed strategy. They have made it their corporate goal to be the leader in deepwater and harsh environment drilling. The catch is those type rigs have extremely expensive dayrates, and drilling in those environments is also extremely expensive in terms of overall spread cost for the operators. In bad times the most expensive stuff gets the closest examination by the bean counters, and is at most risk of being cut back. Transocean has ten out of fourteen new fifth generation rigs coming up for contract renewal within the next year. The operators are saying point blank they won't pay the kind of money Transocean needs to make a return on those investments - so the market isn't going to be kind to RIG until that question is sorted out. Sharp