Seadrill Ltd. (SDRL)

It is capital intensive. Of the chunks of production of oil that can come on and off line is (1) shale, (2) oil sands and (3) off shore, which this company addresses. It is expensive using this approach.

Another example of a leading indicator of what lies in store for the capital spend on the back of falling oil pieces. This is a Norwegian offshore, deep technology company for deep-sea drilling. Very interesting company an excellent technology. He questions the sustainability of the dividends. It looks good in the next quarter or so, and fundamentally the operating strength is very strong. Ability to maintain this level of dividend could be questionable if oil prices stay weak and the rig count declines, as we are seeing right now.

Off shore oil drilling. Last year the oil majors had trouble making profits despite the high price of oil. They cut back on a lot of exploration plans. Prefers a manufacturer to a contractor. KPELY on the pink slips, for example.

Big offshore driller and stock has done extremely well over the last 6 months. Pays a big dividend and he is not sure it is sustainable. The company is highly levered. Very expensive compared to other compelling oil field service companies. 7.7% yield.