ESV - Bassoe Offshore: Too Soon Too Optimistic?
Image: Drillship Deepsea Metro I. Source: OffshoreEnergyToday.com
Industry Thesis
The offshore drilling Industry and more specifically the ultra-deepwater portion, represented by the drillships' section (mid-water, deepwater, and ultra-deepwater), has been struggling for many years from an endemic self-inflicted oversupply. This condition was aggravated by the oil price crash which began in mid-2014 (see chart below) and lasted well over two years with catastrophic financial consequences endured by most of the players in this industry. The total drillship fleet per InfieldRigs is 129 drillship rigs (see chart below).
The oil crash is now a forgotten nightmare,