2nd time's a charm for shallow water driller Hercules [HERO] as New Orleans judges once again ruled against the Obama administration's 6-month moratorium on deep water drilling. Yes, the moratorium had negatively affected shallow water drillers as well because they had to reapply for permits. On top of that, many oil services giants like Chevron had declared 'force majeure' which basically means they could cancel contracts with rig operators like Herculesbecause of 'unavoidable catastrophes.'
Hercules' CEO John Rynd, a longtime oilman who spent 15 years at Noble Energy before heading up HERO, joined me exclusively on Fox Business to talk about re-starting operations.
It's not simple. They had to reapply for permits, which is never easy. The wait-and-see game is brutal. Rynd tells us they're looking at layoffs, considering the option every day but working hard to keep what Rynd describes as a "dedicated workforce."
I like this businessman. He admits there are changes that need to be made to make Gulf of Mexico operations safer across the board. Please listen to my interview with him.