This option makes sense given that the industry is currently in the midst of a major consolidation wave as it seeks to cut costs and competition to survive its current downturn. Industry leader Transocean (NYSE: RIG), for example, recently agreed to acquire Songa Offshore in a $1.2 billion deal. Before that Ensco (NYSE: ESV) announced an agreement to buy Atwood Oceanics (NYSE: ATW). One of the draws of these deals is the expected cost savings by combining forces.