Easy credit!

Deepwater oil rigs, all the latest bells and whistles available cheap.

Come and get them.

You know really, it's almost that bad in the offshore drilling market.

Well, in gas producers have had to put pressure on their suppliers.

And whenever possible, these energy companies, they've delayed projects,

especially the more costly offshore ones.

For those that build and operate offshore drilling rigs, the nightmare may have only just begun.

So rig owners have spent hundreds of millions of dollars to construct

each one of these sophisticated bits of deepwater kick.

Meanwhile, the day rental rates for these have halved to about 2500 dollars since 2014.

And another 35 new rigs are due for delivery in the next few years.

That will add 15% of supply without enough work for them.

Now any debt raised to build these rigs looks less secure with each passing month.

These liabilities already make up 80% of the enterprise value.

That's market value plus net debt of the 16 listed rig companies in the US and Norway.

That means essentially that the market believes the sector is bust.

Not to worry, though.

Some investors are snapping up any available distressed debt; indeed,

some rig providers have already gone through that restructuring.

For example, in December, Vantage Drilling in the US, which is three deep water drillships, filed for bankruptcy.

And whereas the old vantage had high cost, mostly due to its interest payment,

new and restructured vantage has the lowest estimated break-even cost in this group.

Vantage can afford to offer lower day rates than rivals,

and according to its online homepage, it's even keen to hire more workers.

So other distressed rig companies such as Hercules Offshore and Paragon are similarly adjusting their costs.

The analysts of D&B see a trend of contractors preferring to keep a rig working rather than removing it from supply.

The largest rig owners, Seadrill of Norway and Transocean and even lowest cost provider Diamond Offshore,

22 billion in growth debt between all of them can only watch nervously

as the newly restructured companies offer customers more discounts in the coming year.

Come on, come all!