Lots of so-called stock adviser beating up on RIG and Crude. Looks like the shorts have well-organized shills trying to beat the price down. If you read carefully, you can see this negativity is contrieved.

Buying RIG at these numbers will return 500% if held for 24 months.

Crude fell because demand fell. Demand fell because crude prices above $120 halted the expansion of world economic growth. Central banks did all they could but could not end the slow down.

Lower crude prices will stimulate growth.

Both crude and RIG have now put in double bottoms.

The Saudis will retain their market share because prices for WTI below $50 a barrel will “completely halt production” in U.S. shale basins. No need for prices to get any cheaper.

By refusing to cut production in today's market, the Saudis face a serious danger that OPEC may fall apart. Irag, holding the second largest reserves in the world, might pull out and go head to head with the Saudis. The Saudis and OPEC would loss all their clout.

They will do the right thing; they're not that stupid.

Excessive inventories are dropping. The prices of both WTI and RIG will drift around the current bottom for a few weeks and then slowing start to head north.

RIG will hold its on until mid-year when the company suspends their dividend, a move that will be seen as a net positive by shareholders.

Projection: WTI will close 2015 at $55 -- RIG will close the year at $30.

Sweet crude does not need to drop below $50 to acomplish Saudis goal of not lossing market share; therefore, it would be insane for them to keep the spickets open.

There is also such things as too expensive and too cheap. Brent crude below $50 is far too cheap. This price overshoots OPEC's intentions. Brent and WTI have hit bottom---no doubt about it!

Load the wagon with RIG stock and set back and count your lucky stars. We're headed back to $100 and maybe more.

And, there is such a thing as PEAK crude. The only question is when do we reach it. One year? Five years? Whenever it happens, I want to be fully invested in RIG!

Drill baby drill.

One more thing... I want to stay fully invested until the shorts try to reverse their position. Can you say, "BIG SQUEZZE COMING."

It does not make sense for the Saudis to protect market share below $50 for brent crude. No one can take market share away from them with cheaper priced sweet crude. $50 sweet crude puts 50% of all producers out of business.

In fact, the smart thing for other producers to do is cut production themselves to keep crude at $50 and let the Saudis grab all the market share they want to bite off. It will bring closer the day when Saudis reach peak oil.

Why would the Saudis run crude down to $30 when $50 is enough to protect their market share?

The Saudis are like a bunch of drunken sailors on pay day. They are spending like crazy on luxury. They would screw themselves to sell any oil below $50.

Crude has bottomed here!

The Saudis are not stupid. They are not going to pump oil and run the price down too much lower. At $50 for Brent, many producers will be loosing money and must close down. Production will drop to meet demand and the Saudis will realize a fair price for their oil. There is no reason for them to push the price down any lower than it is now. Crude has found its bottom.

RIG will bounce up and down due to too many daytrader.

Best bet is hang tight and ride out this market nonsense. We'll be back about $50 share by the end of the year and you'll double your money.

How Low Can Oil Go?

This article says oil will bottom at $50 and hold there for about 6 months or until the excess supply is removed. Then crude will recover to maybe $60 or $70.

I believe it. I also believe that the world economy will heat up and crude oil deman will increase. And, I also believe the cheapest low sulfur crude will be found in deep water. Deep water drilling is the future. RIG has 5 drilling ships on order that are alredy leased at day rates of $500,000.

I recall the advice of many great investors: "Choose wisely, buy in, and hold." I'm ganna take that advice because I truely believe RIG will break $100 in the next 2-3 years. Even if it tales 5 years, at $100, I would still realize a 20% annual return by holding tight. I might also add more shares on the dips.

Viking7, you miss the point. Sure, it cost more to drill in deep water but deep water is were the major oil fields are to be found. Production companies might pay more to drill, but the field might produce for decades, making drilling cost much cheaper over the long pull.

And, there is a day coming soon whenwe near PEAK oil. WHEN THAT DAYS COMES, RIG will rocket above $200 per share. The stock will be selling for at least $30 by year end. Buy in and enjoy the ride up.

As long as oil stays under $60, Russia, Venezula, and half of OPEC are screwed. The will not pump more crude because their cost are more then $70 barrel.

he cheapest best-grade oil will found in massive offshore fields, and this is where production companies MUST drill -- and they know it.

This is also where the major natural gas fields will be discovered. Natural gas is the world's future source of energy. Therefore, it's a mistake to peg RIG share prices to the current price of crude.

Sure, some producers are negoiating to sign the best contract they can but, in the end, they will select the best rigs for the job. RIG has the best gas drilling rigs in the business.

All RIG needs to do is set back and wait; however, management should cut the dividend to maintain liquidity. With its large liquidity position, RIG can survive any downturn.

Long-term iValue nvestors should add shares on any pull back.

A share buyback with the dividend savings would also be a fantastic move by management.

The stock will bounce at least $5 when the dividend is finally cut.

All and all... RIG is a strong buy at these numbers.

Here's a web site that explains why oil prices dropped better thn I can. why oil prices took a nosedive

Oil dropped because demand dropped. Demand dropped because the world economy can not recover on $120-barrel oil. High energy cost just takes too much steam out of the econnomical engine.

On the other hand, $60 crude will allow the economy to get back on tract, which will increase the demand.

Russia got hit hard because their cost per barrel is close to $80. They are dependant on $100 crude... Their economy will collaspe, and tough-guy PUTIN will get kicked out of office. Russia must shift their focus from hydrocarbons to manufacturing.

With peak oil production at least 50 years into the future, for OPEC to run up crude to $120 was a suicidal mistake. This high prices sparked new energy technologies needed to reduce demand and extract more oil from depleaded wells (fracking).

OPEC's sweet price for crude is just below the production cost of fracking, which is projected to be $50 barrel--maybe $60 in ten years. In other words, crude is very near its bottom and OPEC will cut production to hold prices. This price also keeps Russian oil off the market.

On the other hand, deep water drilling for mega oil and gas deposits is highly profitable even at $40 barrel. Production companies that want to stay in the game will be forced to drill for big deposits in deep water.

Natural gas is the fuel of the next century. Its low carbon content relative to other fossil fuels will play a significant
role in reducing carbon dioxide (CO2) emissions, acting as a “bridge” to solar power and a low-carbon future.

The majors know this and will be drilling in deep water looking for major gas discoveries. Huge marine platforms will anchor above these fields and process natural gas and turn it into a liquid. LNG tankers will pull along these platforms and load the LNG and take it to markets all around the world. No need to build expensive pipes and shipping ports.

Said differently, it's a big mistake for RIG stock price to tract the price of crude. Deep water drilling for natural gas is RIG's future. That's why I don't care what happens to crude prices. I'm long RIG and plan to stay that way.

I'm an oil patch investor since 1994. I recall when oil fell to $5 barrel and our economy was booming. Just recently it ran up to $120 and almost bankrupted the world. The high price also sent oil demand into a recession. People started buying small rice-burners to drive back and forth to work. We beieved that oil production would peak and we would soon find a new source of energy.

Instead of peaking, we discovered newer ways to get more oil out of the ground and newer oil and gas fields in deep water so OPEC kept the prices high and raked in quadrillions.

The problem is that the world can't afford $120 oil so oil demand started to fall and the world economy became shaky. Cental banks tried all they could to turn it around but failed.

We areabout to enter a great depression, and OPEC knows it, as do many smart people around the world. But no one wants to admit that crude oil prices can be muniulated.

To prevent destroying their own market, OPEC raised production and created a temporary oil glut that caused crude to come tumbling down.

Now we are back to relative cheap oil and the world economy (except poor Russian) will soon begin to soar. Oil demand will sky rocket and we will see boom times for deep water drillers like RIG.

If you are a smart oil patch investor, you will load up on this stock at these super low prices. I promise you a 50% return every year for the next five years. If you invest $50,000 in RIG stock, you will make $200,000 in 5 years. And all you got to do is set back and enjoy the ride.

Brent crude will stabilize at about where it is now and all modern nations will experience a 5 year boom (except poor stupid Russia).

I'm now shopping around for a nice 1975 Fleetwood gas guzzler. Let me know if you run across one for sale.

Long RIG and getting longer on every dip.

The drop in crude is all a big muscle play by Saudi Arabia and a few other OPEC deep pockets. They want to scare money away from investing in shale oil. They also realize now that crude was way over priced at $120. At such a high price, alternate energy can compete and one day nasty crude will go the way of dirty coal. You can bet that OPEC will never allow crude to exceed $80 again. OPEC will pump like crazy to make sure this never happens.

The sweet spot seems to be around $70. At this price level the world economy will grind along nicely, and demand for crude will improve.

This doesn't mean that RIG is headed for bankruptcy. The real play for RIG is in deep-water drilling for GAS. The move is underway now to build giant floating platforms that can set above a GAS field for decades. These platforms will store the gas, liquefy it and offload it to special tankers for delivery directly to a piping systems on land.

Natural Gas is the clean energy source of the future. Major gas fields will be discovered in deep water and good day rates will return to this market.

Mark my word... and don't worry about RIG bouncing up and down 5% every day. Just buy in and hold on tight. The ride will be bumpy but your investment will double and maybe triple in two years.

An old oil patch investor...

Arab OPEC producers expect global oil prices to rebound to $70-$80 a barrel by the end of next year as a global economic recovery revives demand. The news follows Saudi Arabia's announcement, which stated that OPEC would not cut production at any price, even at $20 a barrel. Gaining on the expectations of firm U.S. economic data due later today, Brent crude is up 1.1% at $60.79/bbl, while WTI is up 1.5% at $56.10.

RIG already hit bottom. We are now dealing with last minute tax selling. After the year is closed... volume will drop and RIG will increase to at least $25 before February.

And don't worry about the price of crude. If it settles under $50, RIG still has a strong future.

Is deep water drilling entering boom times?

Shell has unveiled plans to build the world's first floating offshore natural gas platform (BBC news). The 600,000-tonne behemoth - the world's biggest "ship" - will be sited off the coast of Australia. They even have plans to build more.

Processing LNG on a floating platform above the well head hundreds miles offshore verses building pipelines to shore will give deep water drilling a big boost.

Do you agree?

My personal opinion is that RIG is a long term play that could result is huge returns. Even if management falters, RIG will be scooped up by someone and likely at a premium.