Replies to post #10920 on The Rising Influence of Rising Affluence

[genisi]

Re: Potentially game-changing oil reserves discovered in Israel

Many open questions that raise doubts about this discovery. I would keep my expectations low.

[Timothy Smith]

KeyBanc analysts contend that six offshore drillers - Diamond Offshore Drilling (NYSE:DO), Ensco (NYSE:ESV), Noble (NYSE:NE), Transocean (NYSE:RIG), Rowan (NYSE:RDC) and Hornbeck Offshore Services (NYSE:HOS) - should be well positioned to lead in an industry recovery.

The six are responding to the downturn by aggressively cutting costs, building cash, retiring and scrapping their oldest rigs, and defending the value of their contract backlogs in the face of customer requests for renegotiations of contract terms and provisions; "when the dust settles, [they] should be well positioned and ready to lead in an industry recovery," KeyBanc writes.

But the firm says it is too soon to invest in a prospective industry rebound when the companies are still reporting a steady stream of bad news amid declining demand for all classes of offshore rigs, thus the six companies only merit Sector Weight ratings.

Six offshore drillers to lead eventual sector recovery, analyst says
http://www.seekingalpha.com/news/2820016

[OakesCS]

I concur w genisi. The claims are hyperbolic and extremely speculative. There may be oil there but certainly not one of the biggest reservoirs in the Middle East as the company claims.

There are several oil shale deposits in Israel and it's conceivable that there are structures containing more deeply buried equivalents that may have formed mature oils.

http://afekoil.co.il/en/

http://www.export.gov/israel/build/groups/public/@eg_il/documents/webcontent/eg_il_082079.pdf#page23

http://pubs.usgs.gov/fs/2010/3014/pdf/FS10-3014.pdf