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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Thean who wrote (18018)4/4/1998 10:18:00 PM
From: Big Dog  Read Replies (1) of 95453
 
Thean -- While you say technology is "old news", be aware that there are two types of technology at play.

The first is what you speak of -- technology to reduce finding costs such as 3D seismic and other such things.

The second "kind" of technology, and what is more important in really driving the offshore market, is the technology that enables production from deepwater fields. This type of technology doesn't necessarliy make production cheaper -- it just makes it possible. As technology of this sort helps produce giant fields, the per barrel finding costs come down due to economies of scale.

Plus, this creates more demand for drilling rigs -- especially in deep water.

I don't think the analysts etc. have really picked up on the fact that techology of the second sort is the key to the future of the offshore drilling business.

This is a reason I have always liked CXIPY. They will hopefully be a company that introduces technology to hook up all the wells. The plumbers. There are some huge challenges to overcome to tie back subsea completions and be able to do so from a further and further distance. (You quickly run into problems of the cold ass water solidifying the waxes and parafins in the flow lines.)

Find the technology leaders and hold them for a few years.
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