Judge Ends Moratorium In Gulf, But Driller Spike Short-Lived (RIG, NE, DO, PDE, DVR, GLBL, BP)
The offshore drilling sector took off following reports that Louisiana federal judge Martin Feldman blocked president Obama’s moratorium in the Gulf of Mexico, but if you blinked, you probably missed it. A look at the intraday charts for Transocean (RIG), Noble (NE), Diamond Offshore Drilling (DO), and other offshore drilling stocks shows that a momentary spike sent some to fresh June highs, but the pop died down after subsequent reports that the U.S. will appeal Judge Feldman’s ruling.
As a whole, the Offshore Drilling Stocks Index is off by -1% for the session with Pride International (PDE), Noble, Cal Dive International (DVR), and Global Industries (GLBL) slipping by -3% or more.
According to coverage by The Wall Street Journal, Feldman said, the Obama administration’s decision “simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region and the critical present-day aspect of the availability of domestic energy in this country.” The White House fired back, that continuing to drill without knowing what caused the BP (BP) Deepwater Horizon explosion “does not make sense.”
Over the last month, the Offshore Drilling Stocks Index has lagged the S&P 500 by more than -3%, though a number of stocks have broken into positive territory for the period. Still, most of the sector is more than -15% off pricing from one month prior to the BP spill began, and only two of the Index’s 22 components are in positive territory on a six-month basis.
As circumstances develop, investors can track the Offshore Drilling Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
More on this topic (What's this?)
The Transocean (NYSE:RIG) Selloff (Wealth Daily, 6/21/10)
Brief Transocean Follow Up (Chain Bridge Investing, 6/9/10)
(RIG) Transocean Analyst Downgrades to Underperform (Stock Blog Hub, 7/14/10)
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