Seadrill

Great news for Seadrill! A Louisiana judge has blocked Obama's drilling moratorium as "arbitrary" and overturned it. Obama immediately promised to appeal. He may win, but that will take time. In the meantime, this is very good for Seadrill, because they have 10 rig contracts expiring by the end of the year, but only 2 in the first half of 2011. The more time Seadrill gets to rework contracts before the market is flooded temporarily the better.

Rig leases can be terminated according to force majeure provisions including, but not limited to government interference with drilling. This has threatened to dump 33 deepwater rigs and drillships on the market very quickly.