Near-term payoff possible for those with more than 50% of operations outside the U.S

In last Wednesday's essay, I highlighted how cheap the oil-services sector has become thanks to the Deepwater Horizon debacle. In today's essay, I'm going to show you a simple system you can use for picking winners out of the wreckage... Last month, the U.S. government slapped a moratorium on all drilling in water deeper than 500 feet. This ban, plus uncertainty about more government action, has hammered the share prices of drilling companies. Many of the offshore companies I follow – either drillers, ancillary service providers, or equipment providers – are down 30% to 40%. The moratorium affects 33 wells. While it cost exploration companies some cash, it was a true revenue killer for the drilling companies they hire. Take drilling specialist Diamond Offshore DO for example. Before the ban, one of its rigs, the Ocean Monarch, was set to start work on a well off the coast of Louisiana in about one mile of water. You can add that rig to the unemployment rolls right now. Instead of a four-year deal for $440,000 per day – $160 million per year – Ocean Monarch is looking for work along with 32 other drill rigs. To read the rest head over to StockHouse.com