Bolling: Profit on Offshore Drillers

It also happens to be the lifeblood of a number of other countries' economies. As the middle class grows in Asia and other emerging economies, demand for oil will continue. I only hope we have open-minded people like these two governors in place to make those tough decisions, such as drilling, exploring and producing our own supply of oil for our future.

As I was doing this research, I noticed a common theme. While the drillers are very confident they could get to the oil, they caution that the availability of rigs could slow the process. Obviously, they could move rigs in slow-producing wells in favor of higher-producing new wells, given the chance. That rang a bell in my head.

The theme kept recurring that the rig operators were very booked up. They had strong backlogs for future drilling. When I asked Diamond Offshore whether new rigs were being built, they told me that many companies in Korea and Singapore were in the process of building rigs for impending demand for drilling.

All this leads me to believe that even if oil were to drop off to level considered "cheap" now, say $100/bbl, these drillers would be doing business hand over fist. I have become a true believer in the drilling companies. Whether oil is $150, $100, whatever, we will be pushing our driller to their maximum capabilities. Their services will be in demand for a long time.

While I like all the drillers on shore or off, I think the opportunity lies with the offshore specialists for now. I think the OCS is the most likely to receive the green light to drill. The threat of losing the oil to adjacent countries like Cuba and Venezuela may inspire some in Congress to move faster there.

« Previous Page

1 2 3 4

Next Page »