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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Douglas V. Fant who wrote (51903)9/27/1999 12:57:00 PM
From: Richard D  Read Replies (3) of 95453
 
<<The President of Patterson Drilling Cloyce Talbott noted that about 500 rigs are drilling for gas in North America currently and that that number would have to rise to 800+ onshore rigs to go simply sideways on gas production at current levels.>>

Douglas,

I LIKE that! Thanks for the heads-up. What happens if natural gas demand goes up? Who doesn't think natural gas demand is going up <g>? When they hit the wall, and are using all available rigs, the rates should be sky-high. I particularly like your post in conjunction with your other heads-up describing PTEN buying even more rigs in preparation for this stampede.

The fact that PTEN is smack in the middle of this torrent of pent up growth perhaps explains why PTEN has given up little ground relative to the offshore brethren during the recent OSX pullback. It seems like a no brainer to me. PTEN owns substantially more rigs than when the stock peaked around 32 dollars in 1997. While rates aren't nearly as good yet, the writing is on the wall, IMHO. Oil, I believe is higher than during that October 1997 stock peak for PTEN.

So while people may read of caution with Baker-Hughes, today, or Diamond offshore not long ago, PTEN is pointing out a need for greater than 60% more land rigs, JUST TO MEET CURRENT PRODUCTION LEVELS!

Thanks very much,

Richard
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