We may earn commissions if you use the recommended services on this site.  

Noble's CEO Warns Biden Plan Could Drive Oil Drilling Rigs Away from US

Latest Business News

Noble Corp CEO Predicts Biden Plan Will Drive Oil Drilling Investments Away from US

Noble Corp, the world's largest offshore oil-rig contractor, anticipates that the offshore-drilling plan proposed by the Biden administration will divert new investments away from the United States and towards other regions. Noble's CEO, Robert Eifler, believes that Brazil and West Africa will lead global growth in the oil industry, while activity in the US Gulf is expected to remain stagnant. President Joe Biden's administration recently unveiled plans for three auctions of offshore drilling rights over the next five years, representing the fewest number of lease sales ever offered in a five-year plan. The auctions reflect the administration's attempt to balance climate and energy priorities. Offshore drillers have faced challenges in recent years as oil companies shifted their focus to lower-cost onshore projects in US shale basins. However, with the slowdown in shale growth, deep-water drilling is experiencing a resurgence, with over $500 billion in global offshore investments expected through 2025. Despite rising oil prices, drillers have been cautious about expanding operations, leading to tightness in floating rig supply and higher rig prices.

Hot Take: The Impact of Biden's Offshore-Drilling Plan on New Businesses

The offshore-drilling plan proposed by the Biden administration, as analyzed by Noble Corp's CEO, Robert Eifler, could have significant implications for new businesses in the oil industry.

Shift in Investment Landscape

Eifler's prediction that the plan will divert new investments away from the US and towards regions like Brazil and West Africa suggests a potential shift in the global investment landscape. New businesses looking to enter the oil industry may need to consider these emerging markets for growth opportunities.

Resurgence of Deep-Water Drilling

The anticipated resurgence of deep-water drilling, driven by the slowdown in shale growth, signals a potential area of expansion for new businesses. With over $500 billion in global offshore investments expected through 2025, the deep-water drilling sector could offer significant opportunities.
Impact of Rising Oil Prices
Despite rising oil prices, the caution shown by drillers in expanding operations indicates a challenging environment for new businesses. The tightness in floating rig supply and higher rig prices could pose operational and financial challenges. In conclusion, while Biden's offshore-drilling plan may drive investments away from the US, it also presents new market dynamics and opportunities that new businesses in the oil industry need to navigate.
Story First Published at: https://financialpost.com/pmn/business-pmn/oil-driller-nobles-ceo-says-biden-plan-will-push-rigs-outside-us
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online
Business Formation Services: View Top 3 Online LLC Filing Companies

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.