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Tuesday, July 29, 2014

National Oilwell sees falling demand for deepwater rigs, (NYSE: NOV)

National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, forecast falling demand for deepwater rigs, overshadowing robust demand for jack-up rigs, used in shallower waters, as well as land rigs.The company's orders for production equipment and new deepwater rigs, or floaters, would be limited in the third quarter, Chief Financial Officer Jeremy Thigpen said.The company's forecast echoed that of rival Diamond Offshore Drilling Inc's, which warned last week that it expected the market for deepwater and utlra-deepwater rigs to be over supplied until 2016.National Oilwell's shares fell 2 percent in morning trading as the warning overshadowed the company's better-than-expected profit that was driven by higher margins, especially in its rigs business.

National Oilwell Varco, Inc. is a provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. Shares of NOV fell by 1.55% or $-1.315/share to $83.38. In the past year, the shares have traded as low as $61.38 and as high as $86.41. On average, 3293290 shares of NOV exchange hands on a given day and today's volume is recorded at 2868480.