The deep water rigs are leaving the Gulf, heading for greener pastures (bluer water?) elsewhere -- the first one is headed for off-shore Egypt.
So much for energy independence for America.
By the way, for investors, this may be a once-in-a-lifetime opportunity to invest in such companies as Transocean (RIG). I do accumulate shares in deep water energy companies.
FYI - It was a transocean RIG that broke....
ReplyDeleteTry Diamond Offshore (DO) - they pay a very nice dividend too...
Rory
You are correct: it was RIG involved in the spill. I bought XOM just after the Valdez spill and did very well (XOM actually made a profit after that due to amount of money that went into escrow and then the penalty was reduced); I also did even better after buying Texaco when it was sued by Pennzoil over Getty; Texaco lost the suit, declared bankruptcy, and again when it came out of bankruptcy rewarded its shareholders very, very nicely. It's very likely that the drop in RIG share price is an opportunity to buy. These things take a very long time to play out.
ReplyDeleteAnd, yes, Diamond is another great alternative.