Ratings on offshore oil drillers Transocean (NYSE:RIG), Atwood Oceanics (NYSE:ATW), Diamond Offshore (NYSE:DO) and Noble (NYSE:NE) were cut by Goldman Sachs (NYSE:GS) today.
The primary mover of Goldman's decision was the probability the existing drilling moratorium of six months will be extended to twelve months, which will devastate the industry if it occurs.
With Obama under extreme pressure, it's doubtful he has the political will to change this, and we'll probably see the extension become a reality.
Overall this will affect about 20 percent of global oil capacity, which will continue to pressure pricing.
All the stocks were down big just before noon EDT.
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