SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Walter Bagehot who wrote (38147)6/3/2010 10:35:40 AM
From: Jurgis Bekepuris2 Recommendations  Read Replies (1) of 78462
 
FYI, FWIW, Citi assessment of the deepwater drillers: Message 26585967

IMHO they are optimistic, since they don't account for price pressures as the E&Ps sees opportunity to lower their costs on the rig glut during moratorium. They also don't account for the rig improvement costs to satisfy any new regulations.

They mention one positive: theoretically drillers will get paid OKish rates for 90 days or remainder of contract under "force majeure". I think there will be pushback from E&Ps to get those rates as low as possible and continue for as short time as possible. The ultimate results of these negotiations are a bit tough to predict.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News