I'm guessing that the market assumes the $400M criminal component of RIG's $1.4B settlement with DOJ will be approved when it's set for an approval hearing on 2/14. But if not, there's a hearing tomorrow (1/29) on BP's $4.5B criminal deal with DOJ. If that one's approved, albeit by a different judge than the one who will consider RIG's deal, perhaps it will be seen as positive news (i.e., a good omen) for RIG. Just sayin' ....
Oil isn't even a "fossil" fuel. There was never THAT much decayed matter to account for billions of barrels of oil in the Earth. Oil is manufactured by natural processes starting with methane (CH4) under immense pressure. The hydrocarbon molecules polymerize under pressure and heat, creating ever larger and complex molecules such as cyclic hydrocarbons (benzene and xylene), heavy oils and greases, diesel, and so on. The earth is constantly making oil. Not at the rate we burn it however. Our appetite for oil is bottomless. We WILL run out even though oil is aboitic.
Coal is different. You cannot bring coal into this argument. It is true that coal deposits look like tree logs. Coal IS a fossil fuel, and is found in much shallower strata than oil. Oil is extracted from immense depths under the sea floor.
Do you think RIG is a good stock to own? I think it is. I think RIG will hit $160 by August 2013.
I know Israel wants to attack Iran. Iran will not export oil to anyone in league with the Jews.
The strait of Hormuz is a volatile and sensitive waterway. It the key waterway for oil export.
I suppose there will be someone who objects to RIG's settlement with the DOJ, but I think it will be interesting to see who that is and what they say. My guess is that the objections to RIG's deal will be small potatoes compared to the ones that surfaced in the approval processes for BP's settlements.
According to recent press reports following BP's plea bargain and $4.5B fine agreement with DOJ for criminal violations, the judge who will soon decide whether to approve that deal has received objection letters from the most obvious victims -- family members of workers who died on the drilling platform and from one survivor who was badly burned worker; but most of those victims were RIG employees with civil claims focused on BP, not RIG. As for BP's settlement with the class plaintiffs, the recent approval of that deal is apparently being appealed by some disguntled plaintiffs who "opted out" of it. They say it's too complicated, which sounds like sour grapes whining from their lawyers because their clients haven't really lost anything -- having opted out they can still proceed with their civil suits against BP (but that means their lawyers have to work longer and harder before they get paid). And according to the judge's detailed rulings approving BP's civil settlement, the other "objectors" (besides those opt outs) were co-parties like State AG's and HAL who weren't even part of the deal so the court ruled that they didn't have standing to object in the first place.
What if a meteor hit Washington DC? LOL! I get your natural disaster point in general, but I am of the opinion that a meteor hitting Washington DC. (1600 Pennsylvania BLVD preferably) might just be the best thing that could happen to the markets.