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Jackup Rigs are Better 2014 Bet than Off Shore Floating: A Wall Street Transcript Interview with Gregory Lewis, a Senior Research Analyst in the Credit Suisse Group Covering Oilfield Assets and Marine Logistics

67 WALL STREET, New York - February 6, 2014 - The Wall Street Transcript has just published its Oil & Gas: Exploration & Production Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Oil Price Expectations - Shale, Offshore and Deepwater Drilling - Unconventional Resources - Domestic Crude Prices - Capital Expenditures and Consolidation Activity - Frontier Exploration and Development - Offshore Deepwater Oil Discoveries - Offshore Capex Growth

Companies include: Total SA (TOT), BP plc (BP), Rowan Companies Inc. (RDC), Gulfmark Offshore Inc. (GLF), Noble Corp. (NE), Transocean Ltd. (RIG) and many others.

In the following excerpt from the Oil & Gas: Exploration & Production Report, an expert analyst from Credit Suisse discusses the outlook for the sector for investors:

TWST: Can you please explain a little bit about your coverage?

Mr. Lewis: I cover two subsectors in oilfield services, the offshore contract drillers and offshore supply logistics, such as boats and helicopters.

TWTS: What are the most important trends you are seeing in the offshore drilling and the oilfield supply sectors?

Mr. Lewis: We see the most significant driver of the offshore industry in 2014 being customer capex. The real question this year will be how much money are the global IOCs - integrated oil companies - and NOCs - national oil companies - going to be spending in the offshore sector. Unfortunately, based on what we are seeing right now, it looks like offshore capex growth is going to be slowing in 2014.

We need to be clear, on an absolute basis overall, offshore capex will be higher versus 2013, but the pace at which capex is growing looks set to slow in 2014. We see that is as the major issue which will impact pricing and utilization for the offshore drillers and logistic companies.

TWST: What are the reasons for the slowing rates of growth by the big oil and gas companies?

Mr. Lewis: I think we are seeing two themes which will impact offshore spend in 2014. The first is a decision by some of the major IOCs to try and rein in capex in order to improve their free cash flow. The second shift seems to be that at least some of the major oil companies have shifted their capex focus more onshore than the offshore in order to take advantage of North American shale opportunities.

TWST: Is there less of a need for capex right now? What is behind the decision to rein it in?

Mr. Lewis: Decisions on capex are undoubtedly tied to the outlook for commodity prices, so that is contributing to the recent slowing of capex. However, looking around the globe, there is plenty of fields to be drilled both exploration and production drilling. Starting in the Gulf of Mexico...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.