Transocean's New Contract an Antidote to Oil's Volatility

Volatility in the energy prices got you feeling a bit loopy? Yeah me too, but looking through all the daily madness at the underlying industry fundamentals makes me feel much better. See through the smoke screen of the daily price swings and see the reality- where money is actually put to work to change the world, not just an investment vehicle or hedge. TransOcean (RIG) just signed another 5-yr contract for one of its deep sea rigs and the pricing power couldn’t be better. The 5-yr contract signed today is worth $1.9 billion while 2 comparable contracts signed just 3 months ago (April 7th) were at $928 per ship for 5-yr:

July 8, 2008: “Transocean Inc. (NYSE:RIG) today announced that its deepwater drillship Deepwater Pathfinder, a single-activity rig capable of drilling in water depths up to 10,000 feet, has been awarded a five-year contract by a subsidiary of Eni