It would seem to be almost a certainty that as work in the Gulf becomes restricted, that money will be diverted to land based exploration and production. Oil/gas exploration and production companies are not going to sit on their hands while things are sorted out in the Gulf. With H&P being primarily a land based driller, they should see a significant up-tick in activity as the EP companies change their focus. To be sure, H&P does have rigs which are deployed and active in the Gulf. I'd expect any slowdown there to be more than offset by renewed interest in land based drilling.
Expect statements from either the company or analysts to follow by the end of May.
I wanted to return this post to the top of the heap in hopes of comment.
I relistened to the conference call (4/29) and heard no references to the Gulf accident. While the situtaiton has deteriorated further since then, or at least it is better recognized as the far reaching tragedity that it is, one would think that the 9-day old event would have been mentioned.
Don't get me wrong, I'm not suggesting that an investment in HP is a way to capitalize on a tragedy. I do believe that they will be a net beneficiary of a shift in drilling activity due to the Gulf sitiation though. And HP's share price has been beaten down without recognition of this.
Another note. I was surprised that HP was not cheering for higher oil prices. THey seem perfectly comfortable with oil in the 60-80 dollar range.
Any other suggestions on how to profit from the oil spill? HP, PDS and ATW are all down ~25% from late April. HP was a little low on earnings this quarter, but if you have some cash it seems like a steal.