There is no question whatsoever that these are very difficult days for Transocean (NYSE:RIG). Because of its role in the BP Gulf oil spill, the company finds itself under a microscope like never before, and it seems reasonable to assume that its is going to be facing legal trouble for years to come. All of this has taken a toll on the stock, which is now discounted based on the assumption of a very bleak future for the world's leading deep water driller.
But not so fast. Even if Transocean bears a larger share of responsibility for the oil spill, I don't think this affects the company's potential in the long term. For better or worse, deep water drilling is here to stay. Plus, Transocean is a leading operator in the field, and it would take years for another company to build a fleet that could rival Transocean's. To me, this means the company has above-average odds of recovering from this matter.
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