Offshore drilling companies were hit on Monday after analysts at Deutsche Bank downgraded four companies in a re-evaluation of its stance on the sector.
Analyst Mike Urban said offshore drillers faced challenges ahead, as evidenced by a secular recapitalisation of offshore fleets and continued pressure in the floater market.
Companies may be "buoyed by seemingly strong rate fixtures", but Deutsche's analysts said it would be wrong to mistake a "wholesale recapitalisation of the offshore rig fleet for a more benign cyclical downturn".
"We see significant further deterioration in the offshore drilling market as relatively flat demand is met with a relentless surge of new supply," Mr Urban wrote in a note on Monday. "More problematic is the increasing likelihood that a huge chunk of the existing fleet will ultimately become impaired and/or obsolete."
Following the downgrades, Transocean fell 2 per cent to $39.48. Noble Corporation fell half a per cent to $27. Ensco fell 21 per cent to $50.52 and Diamond Offshore Drilling fell 1 per cent to $47.09.
The S&P oil and gas drilling index fell 1 per cent to 486.66.
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WNA - Apart from adding capacity, utilisation of existing plants has improved markedly since 2000. In the 1990s capacity factors averaged around 60%, but they have steadily improved since and in 2010, 2011 and 2014 were above 81%. Balakovo was the best plant in 2011 with 92.5%, and again in 2014 with 85.1%.
WNA - India has a flourishing and largely indigenous nuclear power programme and expects to have 14.6 GWe nuclear capacity on line by 2024 and 63 GWe by 2032. It aims to supply 25% of electricity from nuclear power by 2050.
WNA - Mainland China has 38 nuclear power reactors in operation, about 20 under construction, and more about to start construction. The reactors under construction include some of the world's most advanced, to give a 70% increase of nuclear capacity to 58 GWe by 2020-21. Plans are for up to 150 GWe by 2030, and much more by 2050.
PLATTS - "The domestic uranium mining industry needs US government assistance to survive the foreign onslaught -- particularly from Russia and Kazakhstan -- that has undermined the US uranium industry while new players -- particularly China -- will soon make the situation worse," Energy Fuels and Ur-Energy said in a petition they jointly filed with the department.