Kontrarian Korner #37 - Tommy Deepwater

Yesterday I was able to talk with Tommy Deepwater, who has been following offshore oil services for more than a decade, with a focus on deepwater. We talked about some of the recent news from the sector, the trend of consolidation and M&A, and where the offshore cycle sits today. His Twitter is a must follow for his weekly updates on the sector. It was a great follow up to my podcast series on oil, and if you’re interested in offshore oilfield services, specifically deepwater, you will enjoy it.Podcast Summary* Noble $NE retiring a couple drillships, and why parts of the stacked fleet will continue to be retired.* Why higher spec stacked drillships are more likely to be reactivated.* Why he thinks Transocean $RIG has the highest quality active fleet.* The Transocean & Seadrill $SDRL M&A rumors, and future consolidation of the sector.* How the offshore bull cycle has been delayed, the picture for 2025/2026, and where day rates have to go to see new builds. * His thoughts on jackups, Borr Drilling $BORR , and their asset quality.* The OSV market, Tidewater $TDW , and how OSVs will benefit from increased activity in the deepwater sector. * Why he finds FPSOs (Floating Production Storage Offloading units) interesting.* Namibia, Colombia, and Suriname as potential geographies for new long-term drillship demand. * Book Recommendation: Chip War by Chris Miller.Kontrarian Korner is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.kontrariankorner.com/subscribe