R & B Falcon is a leading offshore drilling contractor for the world. Among the growing intelligence budgets and increasing deepwater drilling activity, the company is making major investments in a number of new state of the art $ 300 million ultra-deepwater drilling rigs. On the day of falling prices and the use of shallow drilling rigs, the company must decide whether to idle capacity to defend pricing. He also has to decide whether to reduce the scope of its deep commitment to the drilling of construction projects. Finally, the company is struggling with whether to continue the "turn-key" contract drilling, in which it will provide a complete set of drilling services. "Hide
by Kenneth Corts Source: Harvard Business School 19 pages. Publication Date: April 28, 1999. Prod. #: 799110-PDF-ENG
