Players and Market Structure

  • Mark J. Kaiser
  • Brian F. Snyder
Part of the Lecture Notes in Energy book series (LNEN, volume 8)


The offshore drilling industry is composed of publicly owned, privately held, and state-owned firms. Large-cap firms diversify their risk by operating in a large number of markets and segments, while firms with smaller fleets specialize and compete in regional markets. In this chapter we describe the contractors, strategies, and market structure of the industry circa 2012, and begin by describing how rigs are valued by the market and compare a cash flow model of net asset value to industry algorithms. The ownership structure of the major players are introduced along with their specialization. A discussion of competition and market concentration concludes the chapter.


Cash Flow Private Firm Operating Expense Fleet Size Offshore Drilling 
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Copyright information

© Springer-Verlag London 2013

Authors and Affiliations

  • Mark J. Kaiser
    • 1
  • Brian F. Snyder
    • 1
  1. 1.Center for Energy StudiesLouisiana State UniversityBaton RougeUSA

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