On Tuesday and Thursday of last week, Brazil's government decided to crack its whip in their ruling on Chevron and Transocean's involvement in last November's Frade field oil spill. Both companies have been dealt an injuction that gives them 30 days to cease operations off the up-and-coming oil producer's coast. Petrobras and ANP, Brazil's national petroleum agency, are both fighting to keep the companies in operation because of their perceived importance in the country's future oil production, but the Supreme Court struck down ANP's first attempt last week.
Transocean appears to be the most affected based on the revenues it generates in Brazil as a percentage of total revenue. It currently has 10 rigs in operation, eight of which are contracted to Petrobras. Its recently announced deal with Royal Dutch Shell (LSE:RDSA)
If the injuction stands the test of Chevron and Transocean's efforts, other offshore drillers such as Ensco (NYSE:ESV)
With the swelling of the global middle class, energy consumption will skyrocket over the next few decades, and long-term investors know that you want exposure to this space now. We've picked one incredible natural gas company that presents a rare "double-play" investment opportunity today. We're calling it The One Energy Stock You Must Own Before 2014, and you can uncover it today, totally free, in our premium research report. Click here to read more.