RIG and ESV each stacked a rig, and Petrobras terminated a contract early that it had with RIG. I think there is general nervousness in the investment community concerning strength of the offshore market going into next year. But there is plenty of evidence of a strong market. It might end up being a situation in which strong markets for say high spec rigs balance out weakness for say older rigs. We're now at that point though where risk/reward considerations kick in and people feel these stocks are a Buy because the bad news is priced in and any good news could take us pretty far.
Mexico congress just voted Yes to allowing foreign investment in Oil. This is good for NE as they do a lot of business with Mexico in the Gulf. This midday rally seems to have occured as this news came out, but I think this Yes vote was expected. Well, not complaining, let it rip.
Bloomberg has an article about it. Just read it, and it won't be until late 2014 that the first contracts with Mexico by foreign firms comes to fruition. So this is a longterm benefit that starts effecting revenues in 2015.