NDP - Why Cartel-Like Price Control Is Hardly Possible In Offshore Drilling
In my recent article on the offshore drilling industry titled “How Fragmented Is The Offshore Drilling Industry?” I highlighted the fact that the industry remained highly fragmented despite the recent moves like Transocean's (RIG) purchase of Ocean Rig (ORIG) or the merger between Ensco (ESV) and Rowan (RDC).
The data presented in that article showed that the industry needs to go through plenty of M&A before its composition will allow any oligopoly-like (or cartel-like) pricing. I could have stopped thinking about the issue after listing 125 offshore