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Transocean

  • Featured Story

    Why the Rising Tide in Oil Hasn't Been as Good for Offshore Drilling Ventures

    By , Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI -

    The spread between West Texas Intermediate (WTI) and Brent continues to narrow.

    Thanks to additional new U.S. pipeline capacity and the growing volume of oil product exports from American refineries, the glut of excess storage at Cushing, Okla., is shrinking.

    This ongoing glut has been the single biggest reason why WTI trades at a discount to Brent. As I write this, WTI is approaching $104 a barrel and Brent $111.

    With crude oil prices continuing to rise, you would think that would be good news for both onshore and offshore drilling ventures.

    But it's just not so, at least in the short term...

Article Index

Why the Rising Tide in Oil Hasn't Been as Good for Offshore Drilling Ventures

By , Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI -

The spread between West Texas Intermediate (WTI) and Brent continues to narrow.

Thanks to additional new U.S. pipeline capacity and the growing volume of oil product exports from American refineries, the glut of excess storage at Cushing, Okla., is shrinking.

This ongoing glut has been the single biggest reason why WTI trades at a discount to Brent. As I write this, WTI is approaching $104 a barrel and Brent $111.

With crude oil prices continuing to rise, you would think that would be good news for both onshore and offshore drilling ventures.

But it's just not so, at least in the short term...

GS, RIG and MON: The Three Stocks It's a Mistake to Hate

By , Chief Investment Strategist, Money Map Report -

When many investors look at Goldman Sachs Group Inc. (NYSE: GS), Transocean Ltd. (NYSE: RIG) and Monsanto Co. (NYSE: MON), they see tainted companies that are probably best avoided.

That's a mistake.

It's no secret that buying beaten-down stocks is the key to maximum gains. But here's what most investors fail to understand: If you want to hit the investment home run, you have to go after the stocks that everybody else hates.

Like Goldman, Transocean and Monsanto.

.

To understand the investment case for these three stocks, please read on..

Money Morning Mailbag: Relief Wells Near Finish, But Oil Spill Blame Game Continues

By , Associate Editor, Money Morning -

While BP PLC (NYSE ADR: BP) closed in this week on finishing relief wells to permanently plug the oil spill, stormy weather threatened to delay the final steps as clean up crews were called in to shore.

BP capped the blown-out Macondo well last week and has been conducting pressure tests to ensure the cap's strength. A relief well is close to completion but work has been halted until the storm passes. All work could be stopped for 10 - 14 days if the area is evacuated.

While the leak may finally be close to plugged, the financial aftermath is far from over. Corporate entities and the U.S. government continue to point fingers at each other.

Read More…

Taipan Daily: BP Risks Facing Criminal Charges For Oil Spill

By , Money Morning -

Fallout from the BP oil spill is spreading. And far from being "cheap" as some pundits suggest, BP's share price could implode if criminal charges are filed.

It's not looking good for British Petroleum... or the Gulf of Mexico. In fact it's looking like an outright disaster, about as bad as we feared.

And BP's stock - which a number of armchair contrarians quickly dubbed as "cheap" in the aftermath of the Deepwater Horizon spill - is at risk of being massacred.

Don't trust the smart-aleck "buy the dip" viewpoints on this one. Not only would investors be unwise to buy call options on British Petroleum at current levels, they may well be better off buying long-dated put options instead... in anticipation of seeing BP's stock price cut in half. Or worse.

We're talking about $50 billion to $100 billion worth of market cap here... at real risk of being wiped out. (That notion might sound wacky. But a lot of folks thought the concept of a "euro crash" was wacky too, when we started pounding the table for it a number of months ago...)

Read More…

BP Bites the Bullet: Analyzing the Full Cost of the Gulf Oil Spill

By , Managing Editor, Money Morning -

The Exxon Valdez dumped 260,000 barrels of oil off the coast of Alaska, and ExxonMobil Corp. (NYSE: XOM) ended up spending about $4 billion in the wake of that disaster. That means Exxon spent nearly 600 times more on cleanup and litigation than what the oil was actually worth at that time.

So how much will BP PLC's (NYSE ADR: BP) Gulf oil spill, which is significantly greater, set it back?

The fact is, it's still impossible to know exactly how much BP will have to cough up to cleanse itself of this crude fiasco without knowing the full extent of the damage caused. But the picture is getting a little bit clearer each day the cleanup effort wears on.

Read More…