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ERROR: type should be string, got "https://www.barrons.com/articles/energy-offshore-drillers-in-over-their-heads-1529589581\nEnergy: Offshore Drillers in Over Their Heads?\nOffshore-drilling stocks face plenty of problems, from costly outdated rigs to low utilization rates as energy firms tiptoe back into big projects as oil prices rise.\nNonetheless, higher oil prices and more optimism in the sector after a dismal start to the year has lifted oilfield-services stocks: The SPDR S&P Oil & Gas Equipment & Services (XES), while still in the red, has recovered from double-digit losses at the end of the first quarter.\nJefferies' Eduardo Royes writes that offshore drillers have had constructive talks with customers about their long-term needs, adding to the revival in the sector, but that it may have come too quickly.\nRoyes acknowledges that the macro environment, with rising oil prices, is supportive, and he does think drilling demand will pick up next year. That said, he warns that \"as the micro (rig market) sits today, there are few tangible positives.\" Contracting still remains relatively unchanged from the last year's depressed levels and many operators seem content not to ramp up their activity. \"As such, the contracted floater rigcount remains range-bound.\"\nIn this environment, he sees less reason for optimism than many investors. Thus, he downgraded Noble (NE) to Hold, citing \"ample downside risk to 2019\" as well as issues beyond that, leaving the stock fairly valued after its recent run. He also has an Underperform rating on Diamond Offshore (DO), but thinks that Transocean (RIG), which he rates at Buy, can continue to outperform.\nThe Energy Select Sector SPDR ETF (XLE) is off 1.2% to $74.15 this morning.\nSign up to Review & Preview, a new daily email from Barron’s. Every evening we’ll review the news that moved markets during the day and look ahead to what it means for your portfolio in the morning."