Transocean: Drilling For Profits

Transocean (RIG) is a name I have started buying a little bit of as it has pulled back more than 12% off it's high as oil prices have continued there often called "parabolic rise". With all of the talk of peak oil and supply vs. demand issues I thought it sounded like a good idea to get in on a company that looks to lead the effort in finding new sources of oil.

As many of you I'm sure have heard Petrobras (PBR) has announced a huge oil find off the coast of Brazil which may be the biggest find in over 50 years. In order to exploit this new discovery they are said to be trying to tie up 80% of the known deep-water rigs on the planet. This bodes well for RIG as only 15 deep-water rigs between now and 2010 will be available including new constructs and RIG owns 7 of those.