The low oil price is hitting the energy sector hard and offshore drilling companies in particular. Transocean for example is down more than 50% since June. Saxo Bank’s Peter Garnry says the stock faces a long climb back from the deep.

Saxo Bank’s Head of Equity Strategy Peter Garnry says future markets are extremely negative on Transocean shares. Offshore drilling companies are extremely sensitive to the plunge in low oil prices because most need oil prices at around 80 USD a barrel to be profitable.

Instead markets are betting on exploration and production companies like Anadarko. While its shares are also down, the company is expected to bounce back faster if oil prices recover as E&P companies are less sensitive to oil price swings.