If contributor Nazim Macbeth has it right: If you can hang tight for two to three years, investors in offshore drilling should do well. Corrective forces such as technological innovation, rig scrapping, etc. are in the works. Also, it's naive to think that shale is the Holy Grail for producers: "The steep rate of decline for shale well production also requires companies to ramp up drilling just to keep a shale project's output steady, driving up costs. A typical onshore shale well's output drops off 60%-80% in 12 months, said James Williams, an economist at energy consultant WTRG. But a typical offshore well has a 10%-12% drop-off rate in 12 months." Source: Takeaway There's a misconception that shale will disrupt offshore's recovery. That mispricing creates an entry point for Transocean $RIG stock. $RIG, Transocean Ltd (Switzerland) / H1 $ESV: $VAL, Valaris plc / H1 $DO: $DO, Diamond Offshore Drilling, Inc. / H1 $SLB: $SLB, Schlumberger N.V. / H1 Like this post if you want more coverage on offshore drilling stocks.