Forbes Story: Strong Offshore Drilling Outlook Keeps Pushing Peak Oil To The Right

PORT ARANSAS, TEXAS - DECEMBER 12: In this aerial image from a drone, tug boats tow the semi-submersible drilling platform Noble Danny Adkins through the Port Aransas Channel into the Gulf of Mexico on December 12, 2020 in Port Aransas, Texas. (Photo by Tom Pennington/Getty Images)

[Note: This story is also published at Forbes.com]

The outlook for growth of drilling in the deep ocean waters of the world continues to brighten as global demand for oil and natural gas keeps rising. From Brazil to Guyana and Suriname to West Africa and even the U.S. Gulf of Mexico, drilling and development of oil and gas prospects is in a global upswing. Thus, if you’re managing one of the world’s largest offshore drilling firms, you are making plans to be in business for decades to come.

‘The best setup in a couple of decades’

That is certainly the case at Houston-based Noble Drilling according to its President and CEO Robert Eifler, who told me during a recent interview “it's arguably the best set up we've had in a couple of decades in our business. And we say that provocatively, knowing that the 2010 to 2012 era was so strong. It’s an extremely strong outlook right now.”

Eifler points to a customer base that is returning to the offshore market due to factors like lower costs per barrel and lower per-barrel emissions created by economies of scale. In mature provinces like the Gulf of Mexico and Brazil, pre-existing infrastructure and a robust availability of support services are also major considerations for highly disciplined operators focused on maximizing returns. With a major capital raise earlier this year and robust demand for Noble’s services, he’s excited about the company’s future prospects.