It's Getting More Expensive to Grow for Big Oil
For companies like ExxonMobil and Royal Dutch Shell , maintaining or growing energy reserves is easier said than done these days. Oil fields are moving further offshore and into harder to reach places underground. Due to these changing dynamics, capital expenditures are on the rise. Each of these two companies are planning to spend over $35 billion in 2013 to sustain existing growth projects and initiate new ones.
To find oil, these companies are setting sail
One key theme here is that offshore drilling will continue to grow. This clearly benefits two of the largest fish in the sea, Ensco and Seadrill , who have been expanding operations at a record pace to keep up with demand. The need for more drillships has never been higher, and that is reflected in the increasing day rates these drillers are able to charge. To dig deeper, check out the video below.
Drilling offshore is increasing around the globe
If you're an energy investor looking for exciting opportunities, then you should look into one of the more intriguing plays in the space: Seadrill. 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 It's Getting More Expensive to Grow for Big Oil originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Ensco. The Motley Fool recommends Seadrill. The Motley Fool owns shares of Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.