Oh man, at these oil prices almost all of the deepwater projects that need Transocean's (RIG - commentary - Cramer's Take) help and National Oilwell Varco (NOV - commentary - Cramer's Take) rigs aren't worth drilling. It is amazing to me how these projects, many of which are done on spec, simply can't be financed at these levels.
These companies are all worth much more in proven reserves than the oil you can get by drilling. Plus, some of these oils have currencies to buy, especially Exxon (XOM - commentary - Cramer's Take). It is a moment for the oils and against the drillers, and I truly think that with oil breaking to the mid-$40s, you will see massive projects -- not just tar sands deals -- scrapped right here.
At the time of publication, Cramer had no positions in the stocks mentioned.
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Jim Cramer Blog Bernanke Has to Step Up 11/20/2008 10:00 AM EST To boost confidence, the Fed chief must call on Europe and China to cut rates.
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