Transocean: Drilling Deep for Profits

With the pullback in oil, many of the oil service companies have seen a dramatic decline. This is strange as many are not linked directly to the commodity itself and still have very nice looking futures ahead.

The best looking of the bunch seems to be Transocean (RIG). They not only have a monopoly in the area of deep oil drilling, but they are financially sound and in a sector that looks good going forward. Even with the price of oil at $100 a barrel, it is profitable to pay Transocean as much as $500,000 per day. Since many of the large land finds with respect to oil are gone, exploration is moving outward into the deeper levels of the oceans and this may be where some of the largest finds are yet to come.