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.