An Update on the Energy Patch - Part I

I just returned from an Energy conference in New Orleans, and what a difference a year makes. At this same conference last year, if the maid who cleaned my hotel room wanted to raise a billion dollars to start an oil company, she probably could have gotten the capital. Not so this year, as a resigned outlook on the current downturn colored everyone's attitudes.

One company attendee told me that currently there was no spot market for rigs. As soon as a contract ended, the rig was being sent back to the owner. There is not even a conversation about a lower rate. It's basically - here's your rig, we'll call you.