From a tactical perspective, it is now time to sell the remain half-position in Todco, though the fundamentals haven't changed. The stock has already run up significantly in recent sessions and is extraordinarily vulnerable to a pullback in energy or any hint of weakness in the contract drilling group, so now is a good time to take your gains. Read More

With Hurricane Rita now bearing down on the Texas Gulf Coast so soon after Hurricane Katrina, most of the northern Gulf production region is simply shut down. With the worst possible news already priced into energy prices the risk is that the storm will be less damaging that expected. If that happens, look for a short-lived yet rather sharp drop in crude oil and gas prices. Read More

Estimates now suggest that around 8 percent of US refining capacity is shut down, as is the Louisiana Offshore Oil Port (LOOP), a major import point for foreign oil. The Henry Hub natural gas terminal in Louisiana is also closed--this is a key terminal for US natural gas. No one has any real idea how bad the damage to production platforms and Gulf drilling rigs might be. Katrina was a category 5 hurricane as it passed near some important Gulf drilling areas and hurricane force winds extended some 100-plus miles from the eye of the storm. The storm has also shutdown refineries which where already struggling to keep up with this summers gas demand, so we could see gas prices continue to rise. Read More

Given the strong market and tight supply in jackup rigs, Todco is an excellent summer play. Read More

An evaluation of several recently released earnings reports. Read More

While much of popular press focuses on China as the big growth story in Asia, India has seen some very impressive economic growth over the past decade. With this growth comes a growing demand for energy. In order to meet this demand without putting further pressure on oil prices, India is considering diversifying its energy generation infrastructure to include nuclear power. Read More