Sunday, February 5, 2023
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA
Oil Market News Today
Advertisement
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
Oil Market News Today
No Result
View All Result
Home Oil Price

Diamond Offshore sunk by virus and oil price war | WorkBoat

July 1, 2020
in Oil Price
Diamond Offshore sunk by virus and oil price war | WorkBoat
Share on FacebookShare on Twitter


Latest Oil MArket NewsPosts

DAILY OIL PRICE: July 30

U.S. shale investors shamed by oil price crash, posts worst quarter since

DAILY OIL PRICE: July 28

On Sunday, Diamond Offshore Drilling filed for bankruptcy protection, hoping to restructure and strengthen its balance sheet. With a fleet of 15 floating rigs (11 semisubmersibles and four drillships), Diamond Offshore is an important player and has a long and colorful history. That history mirrors the industry’s boom and bust journey from the ‘70s through the ‘90s.

The company’s roots date to 1953 when Alden J. “Doc” Laborde founded Ocean Drilling and Exploration Co. (ODECO) in New Orleans. A decade later, in Texas, Donald McMahon, a rancher and businessman, took control of a bankrupt small onshore driller at the request of its debtors. McMahon renamed it Diamond M Drilling Co. after his ranch. In 1970, Diamond M went public and expanded into the offshore market by purchasing rigs as the oil boom grew. In 1977, Diamond M was a takeover target of Western Company of North America, an oil services provider. Kaneb Services Inc. foiled that attempt by purchasing Diamond M, only to suffer with it through the 1980s oil bust.

In the late 1980s, James Tisch led his family-controlled Loews Corp.’s efforts to purchase undervalued offshore drilling assets betting on an industry recovery. In 1989, Loews purchased Diamond M’s assets from Kaneb, and in 1992, it purchased the drilling assets of ODECO from Murphy Oil, who was a founding partner in 1953. Loews sold 30% of the renamed Diamond Offshore to the public in 1995 and retained a 53% ownership until Sunday’s filing.

Diamond Offshore is likely the first of a number of drillers who will succumb to the 2020 black swans of the coronavirus pandemic and Russia-Saudi oil war. In a world with very low oil prices, the high-cost offshore E&P market will suffer lower activity and, importantly, a reduction in the earnings power of drilling rigs. Even optimistic forecasts see oil market turmoil depressing oil prices for two-to-four years, or possibly longer. Low activity and day rates make paying the interest on debt impossible, while trying to keep organizations intact.

In today’s offshore market, and given its likely future, rig values, which are supposed to reflect their income generating capability, are only a fraction of balance sheet estimates. Rig values today are below the associated debt supporting them. This imbalance will be addressed through trading the company’s equity to its debtholders in return for them cancelling the loans. Those drillers with the highest quality rigs and strongest balance sheets have the best chance of successfully navigating this restructuring process. Current shareholders, including Loews, will emerge from this process owning only a low single-digit percentage of the company. That will be a better outcome than for shareholders of weak companies where all the equity is wiped out in the restructuring.

We have entered the final stage of shareholder wealth destruction of offshore companies. This process will prove painful and demoralizing. It is necessary for the industry’s eventual recovery. Even the worst storms eventually pass and activity…



Read More: Diamond Offshore sunk by virus and oil price war | WorkBoat

Tags: DiamondoffshoreoilpricesunkviruswarWorkBoat

Related Posts

DAILY OIL PRICE: July 28
Oil Price

DAILY OIL PRICE: July 30

by Oil Market
July 31, 2020
0

Oil Barrels Posted: Thursday, July 30, 2020 2:00 pm DAILY OIL PRICE: July 30 Odessa American oanews@oaoa.com Odessa American...

Read more
U.S. shale investors shamed by oil price crash, posts worst quarter since
Oil Price

U.S. shale investors shamed by oil price crash, posts worst quarter since

by Oil Market
July 30, 2020
0

HOUSTON  – U.S. shale oil producers, whose weak returns in recent years had them out of favor with investors...

Read more
DAILY OIL PRICE: July 28
Oil Price

DAILY OIL PRICE: July 28

by Oil Market
July 29, 2020
0

Oil Barrels Posted: Tuesday, July 28, 2020 2:00 pm DAILY OIL PRICE: July 28 Odessa American oanews@oaoa.com Odessa American...

Read more
DAILY OIL PRICE: July 28
Oil Price

DAILY OIL PRICE: July 28

by Oil Market
July 29, 2020
0

Oil Barrels Posted: Tuesday, July 28, 2020 2:00 pm DAILY OIL PRICE: July 28 Odessa American oanews@oaoa.com Odessa American...

Read more
Saudi Arabia and Russia end their oil-price war with output cut agreement
Oil Price

Saudi Arabia and Russia end their oil-price war with output cut agreement

by Oil Market
July 28, 2020
0

By Javier Blas, Salma El Wardany and Grant Smith on 4/9/2020 LONDON (Bloomberg) - Saudi...

Read more
How Oil Prices Went Subzero: Explaining the COVID-19 Oil Crash
Oil Price

How Oil Prices Went Subzero: Explaining the COVID-19 Oil Crash

by Oil Market
July 27, 2020
0

2020 hasn’t been kind to the energy sector, and a growing wave of energy bankruptcies has started to build....

Read more
Next Post
Chesapeake Energy bankruptcy raises questions about oil, gas failures –

Chesapeake Energy bankruptcy raises questions about oil, gas failures -

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Today Oil Markets

Oil and gas companies tap DUC inventories to boost production at lower

Oil and gas companies tap DUC inventories to boost production at lower

3 years ago
Global Jojoba Oil Market will Witness Steady Growth Till 2027 Post COVID 19

Global Jojoba Oil Market will Witness Steady Growth Till 2027 Post COVID 19

3 years ago
Oil and gas facing its own ‘energy apocalypse’

Oil and gas facing its own ‘energy apocalypse’

3 years ago
Oil Prices Climb Despite Fears Of A “Second Wave” | OilPrice.com

Oil Prices Climb Despite Fears Of A “Second Wave” | OilPrice.com

3 years ago
New Mexico town, oil companies in fight over water use

New Mexico town, oil companies in fight over water use

3 years ago
Campaigners call for more rare epilepsy patients to be given cannabis oil

Campaigners call for more rare epilepsy patients to be given cannabis oil

3 years ago

Oil Market

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Construction of Dangote oil refinery Africa’s largest nears completion

Construction of Dangote oil refinery Africa’s largest nears completion

July 31, 2020

Russia Oil Market

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

July 29, 2020
Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

July 28, 2020

Europe Oil Market

Oil rises further from 3-week lows, but headwinds loom amid pandemic

Oil rises further from 3-week lows, but headwinds loom amid pandemic

July 31, 2020
Shell posts $18billion loss in second quarter – News for the Oil and Gas

Shell posts $18billion loss in second quarter – News for the Oil and Gas

July 30, 2020
Path to net zero: European oil majors outpace US companies on climate goals

Path to net zero: European oil majors outpace US companies on climate goals

July 29, 2020
Oil price holds near four-month high amid bearish signals – News for the

Oil price holds near four-month high amid bearish signals – News for the

July 28, 2020
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 MarketFor Oil.com

No Result
View All Result
  • Home
  • Market
    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas

© 2020 MarketFor Oil.com