Goldman Sachs (NYSE:GS) has been slashing ratings of oil companies today in light of their belief the moratorium on drilling in the Gulf will be extended, and consequently Atwood Oceanics (NYSE:ATW) was cut to a "Sell" by the financial giant.
The current six-month moratorium on drilling for oil in the Gulf of Mexico being extended to 12 months was the impetus behind Goldman's cut, which will have an effect of cutting production by around 20 percent overall globally.
Atwood was down to $24.28, or $1.73, a 6.65 percent fall, as of 12:02 PM EDT.
Analysts at Goldman Sachs say it could be 2012 before significant drilling in the Gulf continues.
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