All NEW Investors: Your gift matched $ for $ this week! GIVE NOW
BP oil spill: The legacy

After BP spill, Transocean remains pioneer

Sarah McCammon Aug 7, 2013
HTML EMBED:
COPY
BP oil spill: The legacy

After BP spill, Transocean remains pioneer

Sarah McCammon Aug 7, 2013
HTML EMBED:
COPY

Transocean is releasing an earnings report Wednesday. The company owned the Deepwater Horizon oil rig and provided the crew involved in the deadly Gulf oil spill and explosion in 2010. Three years later, the company is going strong, and analysts are projecting better-than-expected earnings.

There’s a simple reason, says Ben Brockwell, an industry expert with the Oil Price Information Service.

“The reality is, crude oil is a very difficult commodity to find,” he says. “It’s a very difficult commodity to get out the ground.”

But Transocean has the technology to do that, better than probably any of its competitors, says Matthew Jurecky, head of oil and gas research at GlobalData Energy.

Rigs equipped to drill for oil in challenging, remote areas, are in high demand; daily rates have gone as high as $600,000 for some of types in recent years.  That adds up, when you consider that drilling an offshore well can take around 100 days.

Jurecky says Transocean has invested those profits in still better technology. That gives the company an ever bigger edge, as oil reserves become scarcer. He says the company appears to be working to move past the oil spill — and the markets are cooperating.

 

 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.