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Strategies & Market Trends : Z Best Place to Talk Stocks
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To: Ron McKinnon who wrote (13535)2/23/1998 10:56:00 AM
From: pz  Read Replies (2) of 53068
 
Ron,

You might want to add LSS to your list of pipes/tubing.

Here is my interpretation of what will probably happen with the current low price of oil.

This list is in order of areas that will be hit hardest by the low price of oil to areas that will be hit the least. 1= worst

1. Oil Producers- low oil prices hit the bottom line before any other areas.
2. Land Drillers- since contracts are usually for a short period of time, and dayrates are already falling....not good.
3. Pipe suppliers- if you aren't drilling wells you certainly won't need pipe or you will use used pipe.
4. On land seismic co.'s- When you don't have the exta $'s around you wait for higher oil prices.
5. Shallow water drillers- these can be terminated easier than deeper water.
6. Supply ships- already competition in the gulf and low oil prices certainly won't help.
7. Offshore seismic- we'll know in March on how the Gulf of Mexico lease auction goes as to how active these companies will be. Deep water is where the huge fields are, so my guess is this area stays very strong.
8. Deep water drilling- the strongest sector because of huge demand and few rigs.

Misc. - service areas like BJS, HAL- don't really know how to list them, but would guess that they would perform like the land based co.'s.

So there you have it....land based co.'s should do the worst....shallow water second.....and deep water should do the best.

Dang...they are coming to repossess my car, so I'd better run. :o)

Paul
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