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: Matthew Scott Davis who wrote (10524)	2/4/1998 11:07:00 AM
From: Big Dog	Read Replies (2) of 95453

I can answer that with a question. Why doesn't Compaq buy a chipmaker? Oil companies are not in the drilling business just like Compaq is not in the chip making business. Drilling, especially offshore, is a highly technical operation that requires a huge capital investment and is subject to extreme boom/bust cycles. While there have been some historical examples of oil companies getting in the drilling business (such as Tenneco with Marlin Drilling), it has not been successful. What you WILL see are partnerships whereby the oil companies partner with a drilling contractor but leave the operations to the contractor. I think most successful companies understand they need to focus on their core business line and not try to be something they are not. I may not have explained this fully, but the short answer is -- it ain't gonna happen. Hey guys -- guess what? Now that a competitor has learned that I may be going to work for Platou, they want to "have a lunch" with me. Damn, the Big Dog is getting to be a popular dog at the pound.

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