After the boom in 1997 and early 1998, the offshore drilling industry downturn in late 1998 and early 1999. Decline in oil prices will lead oil companies to reduce drilling budgets, and setting using drops from nearly 100% to 70% in some markets. Day prices - prices paid for services rig - falling by as much as 75%. The case illustrates how supply and demand work together to determine the price and use in the short term, as well as long-term delivery is defined in an industry where additional capacity will take a few years. Also describes the movement of the industry towards the "turnkey" contracts, in which drilling contractors to provide a complete set of drilling services, and how advances in deepwater drilling technology is changing the structure of the industry. "Hide
by Kenneth Corts 22 pages. Publication Date: April 28, 1999. Prod. #: 799111-PDF-ENG
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