Americans still don't have health care, the US military still occupies Iraq, its occupation of Afghanistan has expanded, and Obama pulled a real bonehead move earlier this year when he announced a reversal--a total boneheaded flipflop on offshore drilling--and gave the likes of T. Boone Pickens (oil industry hedge fund operator now) and Transocean (the company that owned and operated and leased Deepwater Horizon to BP), at least temporarily, a huge profit from capital gains. T. Boone was on CNN, but he didn't divulge that his hedge fund's most valuable holding was the company that gave us the Deepwater Horizon disaster. BTW Transocean is HQd in Geneva for tax purposes, but it is most thoroughly an American company.
The clock is now ticking for the new commander in the buck stops here chief. There is enough oil in that resevoir that BP and Transocean were tapping into to poison all the oceans of the world. Hint: predator drones and the 10th mountain division aren't going to save our asses on this one. I'm wondering if Goldman Sachs isn't now trying to figure out if they should make artificial shorts on end of the world scenarios. http://www.gurufocus.com/news.php?id=88985 T. Boone Pickens, founder and chairman of Dallas-based BP Capital LLC, spoke with Bloomberg's Margaret Brennan yesterday about President Barack Obama's pledge to expand offshore oil and natural gas drilling and the outlook for U.S. energy policy. The president wants to permit exploration in parts of the Gulf of Mexico and the Atlantic Ocean not previously offered to companies such as Exxon Mobil Corp., the country's largest energy producer. Naturally, T. Boone Pickens’s hedge fund is full of Oil & Gas companies: No. 1: Transocean Inc. (RIG), Weightings: 12.76% - 345,980 Shares Transocean LTD., formerly Transocean Inc., is an international provider of offshore contract drilling services for oil and gas wells. Transocean Inc. has a market cap of $27.78 billion; its shares were traded at around $86.38 with a P/E ratio of 7.6 and P/S ratio of 2.4. Transocean Inc. had an annual average earning growth of 22% over the past 10 years. http://streetauthority.com/a/how-obama-instantly-created-22-billion-investor-wealth-1244 The action added at least $1.5 billion in market value to the offshore drilling industry's major players. President George W. Bush might have been an oilman -- and, to be fair, he did try to open up some areas for drilling -- but it's Barack Obama who today snapped his fingers and added nearly $1 billion in market cap to Transocean (NYSE: RIG), the leading offshore drilling company. Transocean, for example, which operates 138 mobile offshore drilling rigs, grew its earnings from $0.22 a share in 2003 to an astonishing $12.48 last year, a gain of +5,572.7%. That's reflected in its historical earnings multiple, which is more than 40 times earnings for the past five years. That kind of earnings growth is possible again. The shares are up nearly +47% in the past year. Diamond Offshore has had similarly strong earnings growth, with an average price-to-earnings ratio (P/E) of more than 30 during the past five years. http://www.onn.tv/daily-trading-ideas/transocean-ltd-nyse-rig-cash-secured-put/ The market tends to begin to price things in early. Yesterday, President Obama proposed opening drilling along Atlantic coastline, east of the Gulf of Mexico, and north of Alaska. Even if this proposal is approved, actual drilling would likely not take place for several years. The largest benefactors would likely be the offshore drilling industry, in which Transocean Ltd. (NYSE: RIG) has a large fleet of deep-water rigs and Jackups for shallow water. Since this would be more long term, the IGP has targeted a cash-secured put if you want to begin acquiring stock. RIG Cash-Secured Put Trade Details: RIG shares are trading at $88.24, up $1.86 today. http://www.deepwater.com/fw/main/Our-History-3.html 2000 2000 was a key year in Global Marine’s expansion of its ultra-deepwater fleet. In April, the Glomar C.R. Luigs arrived in the Gulf of Mexico and began drilling her first well for BHP Petroleum. In December, the Glomar Jack Ryan was completed and began drilling her first well in Trinidad under a three-year contract with ExxonMobil. 2001 Discoverer Spirit twice breaks the world water-depth record. 9,727 feet of water 9,687 feet of water. Discoverer Spirit sets world record for deepest subsea completion. 7,209 feet of water. Transocean Sedco Forex Inc. and R&B Falcon Corporation combine to form the world's largest offshore drilling contractor. Global Marine and Santa Fe International merge to become GlobalSantaFe Corporation, the second largest drilling contractor in the world. Santa Fe executed contracts with PPL Shipyard PTE, Ltd. of Singapore for the construction of two high-performance jackup rigs and two ultra-deepwater semi-submersible rigs with options for additional drilling units. Construction began during the first half of the year. 2003 Discoverer Deep Seas sets the world water-depth record, becoming the first rig in the industry to drill in more than 10,000 feet of water. 10,011 feet of water. Polar Pioneer constructs a world-record horizontal well. 23,000 feet. Deepwater Nautilus sets world record for deepest subsea completion. 7,570 feet of water. 2004 Deepwater Nautilus sets its fifth straight world water-depth record for a moored semisubmersible rig. 8,951 feet of water. Deepwater Horizon sets world water-depth record for a semisubmersible rig. 9,576 feet of water. 2005 Deepwater Nautilus sets world record for deepest offshore oil and gas well. 32,613 feet True Vertical Depth. Discoverer Spirit sets world record for deepest offshore oil and gas well. 34,189 feet Measured Depth. 2006 Deepwater Millennium sets four world records for completion operations, the latest in approximately 9,000 feet of water. 2007 Transocean and GlobalSantaFe merge to become the world's largest offshore driller. http://en.wikipedia.org/wiki/Transocean In September 2009 its Deepwater Horizon rig established a 35,050 ft (10,680 m) well, the deepest well in history. _______________________________________________ Marxism-Thaxis mailing list Marxism-Thaxis@lists.econ.utah.edu To change your options or unsubscribe go to: http://lists.econ.utah.edu/mailman/listinfo/marxism-thaxis
