Titman at UT Energy Forum: Markets Punished Deep-Water Drilling-Related Companies After Spill
From McCombs TODAY
May 28, 2010
The challenges associated with the Gulf oil spill brought together some top academic minds for discussion and analysis recently at The University of Texas at Austin. The public forum, "Oil in Troubled Waters," explored potential liabilities and consequences for companies involved, as well as and environmental concerns. (Watch the recorded Webcast at the Energy Institute's new Web site.)
Panelist Sheridan Titman, the executive director of the Energy Management and Innovation Center at McCombs and a professor of finance, explained how stock price fluctuations over the past month have suggested that the financial markets, rather than focusing on oil companies in general, have singled out those companies related to the spill or who have similar investments in deep-water drilling for stock value 'punishment'--a topic he has also blogged about. However, Titman added, "I don't think we're going to decide we don't permanently want to drill in deep water...The question is whether we are going to drill now or if we are going to drill later."
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