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: Lucretius who wrote (10205)	1/30/1998 1:01:00 PM
From: bw	Read Replies (3) of 95453

LT...Just was thinking about the more macro longer-range view on the drillers, and a few questions come to mind. As with all US industry..the future existence & prosperity of many of these companies will ultimately depend on consolidation. The large fish eating the smaller fish theory is already making itself apparent with conglomerates like SLB and HAL in the forefront, and FLC now showing the recent trend to combine forces for better buying power, lower cost-effective mgt, and all the other advantages that consolidation can [must] bring. So...why haven't the big oils ever bought into/out the drillers? I realize that the companies discussed here are not exactly "Mom&Pops", but with the recent shortage and lack of pricing leverage to the big oils...why not eventually buy-out the whole sector? [probably an obvious answer here..]

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