US OKs 1st Deepwater Drilling Permit After BP Spill
The U.S. has approved its first deepwater drilling permit after the BP spill. This first permit went to Noble Energy , which is an exploration and production company.
This will be a benefit to many deepwater drillers, including Noble Corp. (note that Noble Corp. is a deepwater driller — Noble Energy is a completely separate exploration and production company), Diamond Offshore , Ensco , Pride and others.
Why? An E&P company like NBL contracts with deepwater drillers to do the actual drilling. This is likely the first of many such permits. Some rigs left the Gulf of Mexico, so a sudden increase in demand would potentially increase the dayrate for the drillers, which would certainly increase profits.
According to the press release, Ensco , a well-known deepwater driller, will be doing the actual drilling for NBL, but there will be others.
"This could be the beginning of a nice little run in deepwater drillers," one trade told me.
- Oil & Other Energy Futures Now
Bookmark CNBC Data Pages:
Want updates whenever a Trader Talk blog is filed? Follow me on Twitter: twitter.com/BobPisani.
Questions? Comments? firstname.lastname@example.org