Have any drilling money to spare?

    • Have any drilling money to spare?

      Getting oil from Oil sands and getting oil from the deep oceans - both are expensive.
      The projects that started when oil was around $147 will see rough times.

      Looks like these projects will have to swallow the bitter pill and get out. With oil at less that $75, there is no bitter pill either. There is no pill.

      One small worry - without money, the growth in technology especially deeper drilling will cease for a while.
    • There seem to be good earnings in drilling still.

      Offshore drilling contractors and companies have reported the third quarter profits to be higher than the earlier quarter.

      While Diamond Offshore profits rose 51%, Ensco's profits rose 5.8%. The rental rates for deep-water drilling rigs are approaching $700,000 per day.

      But it may not be all that rosy. The market when the oil prices are low have yet to be tested. That, combined with many likely cancellations and rig orders will probably shake the market. The other drilling companies will release their quarterly results soon : Pride International on 30th October and Transocean on Nov 5th.