Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: SliderOnTheBlack who wrote (52185)	9/30/1999 3:31:00 PM
From: Meridian	Read Replies (1) of 95453

Slider, Thanks for the post. Less capex = less non-OPEC production in 2000 & lower oilfield service prices right now = good margins for E&P's and sustainable oil prices next year (good supply & demand). So are service eps est. ahead of reality? Seems to me that we should be focused on E&P's which can sell forward production into a $24 market and grow cash flow by gobs in 2000 when oil is $20. Services, except shallow well or work over, are not in great demand yet. If capex is to pick up big time in 2000, it won't be until late'00/early'01 that capacity tightens and these guys get some pricing power. When they do they'll stick it to E&P guys. If this is the case, we should buy OSX in 6 months and E&P guys now. How's that for strategy? cheers gambler

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