3 Big Reasons to Buy Seadrill


In the following video, the Fool's Austin Smith and analyst Jim Mueller discuss reasons to buy Seadrill. Jim first cites the rising day rates that oil companies are paying drillers to extract oil. Seadrill's day rate is higher than average. Second, oil companies must always be concerned about major blowout disasters, and since Seadrill's fleet is younger, mishaps are less likely to occur.

And finally, as oil prices remain high, demand for drilling the hard-to-reach oil is also high, since it's now economically feasible.

To learn more about the strengths and weaknesses of this company, as well as what to expect from Seadrill going forward, be sure to check out this brand-new premium report put together by one of our top Stock Advisor analysts. Click here to get started.

The article 3 Big Reasons to Buy Seadrill originally appeared on Fool.com.

Austin Smith owns shares of Seadrill. Jim Mueller owns shares of BP, Seadrill, and Transocean. The Motley Fool recommends Seadrill and Total and owns shares of Seadrill and Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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