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It is argued that the global drilling rig industry is in the middle of the biggest build boom since the 1980s. This is due to a number of key factors, including a steady projected increase in demand, especially for deepwater rigs that can drill in depths greater than 4,000ft.
On the one hand, daily rates for these rigs have tripled since 2004 to about US$5000,000 per day supporting the argument of demand outstripping supply. On the other hand, however, one can argue that oil prices have not seen such a dramatic increase and are not forecasted to rise so rapidly. In addition, there is the argument that oil companies are cutting on their capex.