Transocean (NYSE:RIG) – Don’t Throw the RIG Out with the Bathwater

Transocean (NYSE:RIG) shares hit $65 last week, and I think that’s a near-term bottom. Yes, there’s a lot of finger-pointing at Transocean, mostly by people who are immensely ignorant of how the drilling business works. Or they have a vested interest in shifting the blame.

At the end of the day, BP hired Transocean to drill a well that BP designed. If Transocean followed the specs, you can’t pin the donkey-tail on these guys. The worst anyone can say – and they’re saying it – is that Transocean had a bad blowout preventer (BOP) that didn’t function. (more)