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Stocks T / Transocean Offshore Inc.


Subject:  Re: The BP-Transocean Contract Date:  8/12/2010  4:31 PM
Author:  saunafool Number:  1133 of 1167

My personal bearishness has been mitigated now that the well is plugged. At least that portion of the disaster is now quantifiable.

The part I'm still not sure of is the long term impact on the drilling industry. Only a small change in the drilling environment could result in excess marginal supply and falling dayrates.

However, I suspect this, like so many other disasters, will be forgotten and the public will go back to driving their SUV's with no connection in their minds between demand for motor fuels and deepwater drilling.

At a bare minimum, RIG and other deepwater drillers will likely face a new slew of regulations and scrutiny. I doubt the costs will amount to a hill of beans for an industry where dayrates can be $500,000.
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