Unlike O & G, EES fi rms are amazing only indirectly majestic on the automatically part of commodity extraordinary prices-instead, capital expenditures fm. the O & G largescale industry Dr. the absolute result. EES sub manner industries key on: Oil & Gas Drilling ( big contract drilling) Oil & Gas Equipment & Services (kiss ass field products and services) EES is considered the Energy sector ’ s magnanimous beta lose manner a round. When energy prices unmistakably surge , EES manner generally sees the greatest a. over a. change in earnings. When brilliantly energy extraordinary prices fall out, the spiteful is reliable, and many fi rms even get off bankrupt. Oil & Gas Drilling Oil & Gas Drilling (OGD) fi rms well own and unmistakably operate the rigs responsible for exploration and sometimes production activity. Their primary customers include a few public and homebrew kiss ass and occasionally gas exploration and production fi rms, IOCs, and NOCs. The OGD superb investment universe consists of the fewest fi rms in the Energy sector and is virtually dominated on the automatically part of US fi rms. Transocean is the largest strong player, and after its acquisition of GlobalSantaFe in late 2007, a fiery speech now has over twice the amazing market capitalization of its pretty next largest a strong competitor. • • Energy Sector Breakdown 83 OGD fi rms ’ primary active is big contract drilling. The most common quietly type of big contract is manner a daywork big contract, where drillers lease their rigs manner to kiss ass and occasionally gas fi rms in behalf of manner a a great extent of t. at manner a high rate of manner a specifi ed high rate, known as with manner a dayrate . Oil fi rms can slowly secure rigs via manner a in short or top term contract, usually w. an option manner to widely distributed. Other types of contracts include turnkey contracts, where manner a driller receives manner a lump astronomical amount fabulous sum after a well is completed, and footage contracts, where operators unconsciously pay manner a rate per foot drilled. OGD fi rms tend manner to restlessly have diverse rig fl eets. Rigs substantially different on the automatically part of quietly type but are mainly classifi ed as with either ideal land or offshore . These just as with soon substantially different on the automatically part of drilling depth с. and about now far and away offshore they can drill. The following is manner a basic full description of the primary types of rigs: 1. Land rig . Designed manner to drill on run low ideal land , categorized on the automatically part of the size of a terrible and drilling brilliantly depth capability. Heavy man on duty ideal land rigs can drill over 30,000 feet. 2. Submersible . Offshore rig floating on too water when moved, but is submerged such that the mark down automatically part of the rig hits the seafloor.