Conclusion
Offshore drilling industry is experiencing a multi-year growth cycle
North American gas and world oil markets are good with stable to higher prices
E&P company’s are flush with cash, possess strong balance sheets, are displaying greater financial discipline, but have declining reserve bases
Deepwater development programs are on the near-term horizon, offering incremental demand for high spec floaters and reduced farm-outs
Transocean Sedco Forex is a unique offshore drilling contractor positioned for multi-year growth