Offshore Drilling Industry Case Study Help Analysis With Solution
Offshore Drilling Industry Case Study Help Analysis With Solution Online
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This case describes that after booming in 1997 and early 1998, the offshore drilling industry slumps in late 1998 and early 1999. Lower oil prices lead oil companies to reduce drilling budgets, and rig utilization falls from essentially 100% to 70% in some markets. Day rates–the prices paid for a rig’s services–fall by as much as 75%. The case illustrates how supply and demand work together to determine prices and utilization in the short run, as well as how long-run supply is determined in an industry where capacity additions take several years. Also describes the industry’s move toward “turnkey” contracts, in which drilling contractors provide a complete bundle of drilling services, and how advances in deep-water drilling technology are changing industry structure. We provide complete covering detailed to the students looking for Offshore Drilling Industry Case Study Help Analysis With Solution .
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CASE ID: HB CASE 3895
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