Exploring the World's 15 Largest Drilling Companies: A Comprehensive Guide

The Offshore Drilling Industry and its Impact

Welcome to our article, where we delve into the offshore drilling industry and
highlight the prominent companies that contribute significantly to this
sector. With a staggering estimated worth of over $50 billion, projected to
reach nearly $57 billion by 2026, the offshore drilling industry faces unique
challenges that have intensified over the past few years. Despite an
anticipated rise in hydrocarbon demand, the industry's future hangs
precariously in the balance.

An Overview of Offshore Drilling Companies

Before we delve deeper, let's first understand what an offshore drilling
company entails. These companies specialize in drilling wellbores beneath the
seabed, primarily to extract petroleum reserves located within the rock
formations beneath the ocean floor. While similar drilling practices can be
employed in lakes, rivers, inland seas, and inshore waters, the term "offshore
drilling" predominantly refers to activities carried out on the continental
shelf.

The Controversy Surrounding Offshore Drilling

However, the industry itself has long been embroiled in controversy. Anything
associated with oil exploration and fossil fuel extraction invites heated
debates, leading to discussions about the industry's future, potential
restrictions, and even the possibility of a complete ban. This controversy
gained momentum in 1969 following a blowout incident at a Unocal rig,
resulting in a massive oil spill that contaminated the ocean. Consequently,
drilling bans were imposed in Florida and California, sparking similar
discussions in developed economies and across the globe.

Supporting Factors for Offshore Drilling

There are several reasons that support offshore drilling, with energy
independence being a primary factor. The United States, known for its aversion
to dependency on foreign oil, is actually the largest global producer,
responsible for a fifth of the world's oil production. However, due to
extensive domestic consumption, the country still relies on oil imports. To
learn more about the largest oil reserves by country, you can visit our
article on the subject. Another rationale for offshore drilling in the US is
the desire to control oil prices. While prices remained stable from the 1980s
to 2003, they have since experienced exponential increases. Nonetheless,
reliable studies suggest that increasing US production would have only a
marginal impact on prices and would not significantly contribute to price
control.

Arguments Against Offshore Drilling

On the other hand, there are several arguments against offshore drilling,
particularly concerning the environmental impact of oil spills. The
devastating effects on the environment, as well as the threat posed to
endangered species, have been significant concerns. The notorious BP oil
spill, also known as the Deepwater Horizon oil spill, stands as the largest
oil spill in history and has played a significant role in shifting public
opinion against offshore drilling, although public sentiment on this matter
tends to fluctuate.

The Impact of COVID-19

The global COVID-19 pandemic has brought about profound changes, upending
forecasts and expectations. With over 50 million people infected and over 1.3
million lives lost, countries around the world implemented lockdown measures,
leading to business closures and economic turmoil. The oil industry has
suffered greatly, with oil prices plummeting below zero for the first time in
history due to decreased demand. This blow has been particularly fatal for
offshore drilling, an industry already burdened with high costs associated
with rig setup and equipment. As a result, thousands of offshore jobs were
cut, and the number of active offshore drilling sites had already decreased by
50% compared to 2015. Many contracts have been canceled, adding to the
industry's woes. The future survival of the companies and the industry as a
whole remains uncertain in the face of the ongoing pandemic.

Ranking the World's Largest Drilling Companies

To determine the current biggest drilling companies in the world, we referred
to Forbes and evaluated each company based on its revenue, assets, and net
income. It is worth noting that even in 2019, several of these companies
experienced substantial losses, highlighting the challenging nature of the
industry. Without delay, let's explore the companies involved in this
controversial practice, starting with number 15:

15. Diamond Offshore Drilling (OTCMKTS: DOFSQ)

Diamond Offshore Drilling, headquartered in Texas, is a prominent drilling
company with operations in various countries, including Australia, Norway,
Mexico, Brazil, Singapore, and Scotland. Established in 1964, the company has
encountered significant challenges in recent years, experiencing declining
revenues, assets, and net income. Here are the latest financial statistics for
Diamond Offshore Drilling:

• Latest Revenue: $0.98 billion


• Latest Assets: $5.8 billion


• Latest Net Income: -$357 million

Despite the hardships, Diamond Offshore Drilling continues its operations and
employs approximately 2,500 individuals.

14. Rowan

Rowan, a relatively new player in the industry, was founded in 2011. The
company is headquartered in Houston, Texas and operates globally, with a
presence in both the United States and international markets. Rowan operates
in three main segments: drilling products, drilling services, and mining,
forestry, and steel products. Here are the latest financial figures for Rowan:

• Latest Revenue: $0.94 billion


• Latest Assets: $6.6 billion


• Latest Net Income: $736.8 million

Despite being a relatively young company, Rowan has shown promise with
positive net income. Its diverse operations across different sectors
contribute to its overall business strategy.

13. Stena Drilling

Stena Drilling, a subsidiary of Stena AB, operates as a UK-based company with
its headquarters in Aberdeen, Scotland. Stena AB is one of the largest
family-owned Swedish companies. Stena Drilling specializes in offshore
drilling and owns a fleet of drillships and semi-submersible platforms.
Unfortunately, specific financial information regarding Stena Drilling's
latest revenue, assets, and net income is not available at this time.

Despite the lack of financial data, Stena Drilling's affiliation with Stena AB
and its possession of various drilling assets positions it as a notable player
in the industry.

12. Noble Corp (OTCMKTS: NEBLQ)

Noble Corp, based in London, is another noteworthy UK company on our list. The
company operates a fleet of 25 drilling rigs, which includes 8 drillships, 13
jackup rigs, and 4 semi-submersible platforms. Here are the latest financial
figures for Noble Corp:

• Latest Revenue: $3.4 billion


• Latest Assets: $12.9 billion


• Latest Net Income: $500.3 million

Noble Corp derives a significant portion of its revenue from major clients,
including Royal Dutch Shell (contributing 36.5% of revenue), Exxon Mobil
(contributing 13.7% of revenue), Equinor (contributing 13.1% of revenue), and
Saudi Aramco (contributing 11.9% of revenue).

With its substantial asset base and a diverse portfolio of drilling rigs,
Noble Corp maintains a strong presence in the industry.

11. Fluor Corporation (NYSE: FLR)

Fluor Corporation, based in the United States, is one of the largest drilling
companies in America. Despite its size and prominence, the company has been
facing significant challenges, as reflected in its financial performance. Here
are the latest financial figures for Fluor Corporation:

• Latest Revenue: $17 billion


• Latest Assets: $7.9 billion


• Latest Net Income: -$1,300 million

In 2019, Fluor Corporation experienced a substantial loss of $1.3 billion,
along with declining revenue. These difficulties indicate the challenges the
company has been facing in its operations.

Despite the recent setbacks, Fluor Corporation's longstanding presence and its
position as one of the largest companies in America contribute to its
significance in the industry.

10. Nabors Industries (NYSE: NBR)

Nabors Industries, headquartered in Houston, Texas, is another notable
American drilling company. With its significant workforce of 15,000 employees,
Nabors Industries plays a significant role in the industry. Here are the
latest financial figures for Nabors Industries:

• Latest Revenue: $6.2 billion


• Latest Assets: $12.2 billion


• Latest Net Income: $141.7 million

Nabors Industries maintains a strong presence in the market, benefiting from
its location in Texas, which is a preferred hub for many American drilling
companies.

With its substantial revenue, assets, and workforce, Nabors Industries
demonstrates its significance in the industry.

9. Ensco (Now Valaris)

Ensco, formerly a UK-listed company, was one of the most profitable drilling
companies in the world. In 2019, Ensco merged with Rowan and is now known as
Valaris. As Valaris is a relatively new entity, limited information is
currently available regarding its operations and financial performance.

However, here are the financial figures for Ensco prior to the merger:

• Latest Revenue: $2.8 billion


• Latest Assets: $14.4 billion


• Latest Net Income: $874.2 million

With the merger, Valaris combines the strengths and capabilities of Ensco and
Rowan, positioning itself as a significant player in the drilling industry.
Further information about Valaris may be available as the company establishes
itself in the market.

8. Baker Hughes (NYSE: BKR)

Baker Hughes, an American company, holds a prominent position in our list. The
company has undergone significant changes in recent years. In 2017, Baker
Hughes merged with GE Oil and Gas, forming Baker Hughes, a GE Company (BHGE).
However, in 2019, the company divested and returned to its original name,
Baker Hughes Company. Notably, as of September 2020, General Electric (GE) is
no longer the majority owner and plans to fully divest from the company in the
coming years.

Here are the latest financial figures for Baker Hughes:

• Latest Revenue: $9.8 billion


• Latest Assets: $19 billion


• Latest Net Income: -$2,700 million

Although Baker Hughes has faced challenges, as indicated by the negative net
income, it remains a significant player in the industry. The company's
extensive assets and longstanding presence contribute to its importance in the
drilling sector.

7. Seadrill (OTCMKTS: SDRLF)

Seadrill, founded in 2005, is a significant player in the drilling industry.
Although the company has experienced financial challenges, as evidenced by its
negative net income, it continues to maintain its presence as a major drilling
company. Seadrill is headquartered in Hamilton, Bermuda.

Here are the latest financial figures for Seadrill:

• Latest Revenue: $4.3 billion


• Latest Assets: $23.5 billion


• Latest Net Income: -$739 million

Seadrill's substantial assets and revenue reflect its significance in the
industry, despite the recent financial losses. The company's operations and
performance will continue to be closely monitored to assess its future
trajectory.

6. Weatherford International (OTCMKTS: WFTLF)

Weatherford International is a highly profitable drilling company that stands
out among its peers. With its latest revenue of $5.2 billion and assets
totaling $7.3 billion, Weatherford International demonstrates its financial
strength in the industry. The company's net income of $3,600 million further
reinforces its profitability.

As a prominent player in the drilling sector, Weatherford International
employs over 20,000 individuals. Like many drilling companies, it is
headquartered in Houston, Texas, a major hub for the industry.

Weatherford International's impressive financial performance and substantial
employee base contribute to its significant standing within the drilling
industry.

5. Saipem (BIT: SPM)

Saipem is a renowned drilling company that secures its place as one of the
largest in the industry. The company is listed on the Borsa Italiana stock
exchange under the ticker symbol SPM. With its extensive operations and global
reach, Saipem has established itself as a key player in the drilling sector.

Although specific financial figures for Saipem are not provided in the given
information, the company's robust presence and reputation contribute to its
prominence. Saipem is involved in various drilling activities, including
offshore and onshore projects, and offers a range of services to clients
worldwide.

As a leading company in the industry, Saipem continues to play a significant
role in the global drilling sector, contributing to its growth and
development.

4. China Oilfield Services (SHA: 601808)

China Oilfield Services, founded in 2001, is a notable state-owned drilling
company based in China. With its latest revenue of $5.2 billion and assets
amounting to $14.3 billion, China Oilfield Services demonstrates its
substantial financial presence in the industry. The company's net income of
$1,300 million further underscores its profitability.

As a state-owned entity, China Oilfield Services plays a vital role in the
country's oil and gas sector. The company offers a wide range of drilling
services and operates both domestically and internationally.

China Oilfield Services' significant revenue, assets, and net income exemplify
its position as a major player in the global drilling industry, contributing
to China's energy exploration and production activities.