This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

4 Offshore Drilling Stock Plays

WINDERMERE, Florida ( Stockpickr) -- The Obama administration on Tuesday ended the moratorium on offshore drilling in the Gulf of Mexico seven weeks early, after coming under pressure from the oil industry. This was welcome to news to many of the offshore drilling companies that operate in the Gulf. Many of these companies can now return to business as normal and restart their Gulf operations.

The drilling moratorium was put into effect after the Deepwater Horizon drilling rig exploded last April, killing 11 people and causing the largest oil spill in U.S. history.

The administration has said that new rules should help to prevent a similar accident in the future. Some of those new rules include new standards for equipment that must be inspected and certified by an independent engineer. Another rule requires offshore drillers to develop comprehensive workplace safety plans.

Under the new guidelines, an offshore driller must have their CEO certify that any rig that is going to operate in the Gulf must meet all of the new and existing rules. Offshore drilling operations will not be allowed to start until this step taken.

>>Also: 4 Safest Oil & Gas Stocks

Hopefully these new rules and guidelines will help to prevent a future tragedy like the one we saw in April. I think it's safe to say that nobody wins from a tragic oil spill -- not the oil companies, not the local communities and not the political powers.

Not all offshore drillers are jumping up and down about this news. The National Ocean Industries Association released a statement that said: "Our companies remain doubtful that this announcement is anything more than symbolic until permits are actually issued for new drilling."

Michael Bromwich, director of the Bureau of Ocean Energy, said that permits for renewed deep-water drilling are likely to be issued before the end of the year.

If permits do really start getting issued by the end of the year, then investors have plenty of time to start trading and looking for the best opportunities in offshore drilling stocks.

The obvious plays are BP (BP - Get Report), Transocean (RIG - Get Report) and Oceaneering International (OII - Get Report), all of which were involved with the Deepwater Horizon rig. I expect these stocks to continue to lift higher now that moratorium is over. However, all of these names have already put in big runs, so I am not so sure these are the best ways to play the lifting of the ban.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
HERO $2.10 0.00%
BP $33.58 0.27%
HAWK $32.13 -0.06%
HOS $11.74 0.77%
NR $4.67 -11.39%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs