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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Douglas V. Fant who wrote (24424)6/19/1998 5:42:00 PM
From: Sunny  Read Replies (2) of 95453
 
Doug,

I am not so concerned about surviving. I felt the 81-82 downturn was terrible. But it forced us to change the way we did business and we were on a much stronger footing than before.

86-87 was horrific because the activity levels dropped by nearly 75%. The companies that survived that what took some bitter medicine but they lived through it, although with a lot fewer employees. Most downsized capacity to a point that they could be profitable at the 700 US rig count. Since that time we have grown again.

When I first joined the conversation a week ago I thought my historical perspective might provide some realism to the quick turnaround hopefuls. At that time I was concerned but not worried for the health of my business. We were focused on the offshore market and growing by increasing penetration from a very low level into a robust market.

Recent news / rumors out of New Orleans today elevate my concern. Chevron will be releasing a large number of their jack ups. Several other companies have expressed that they will also release rigs in the coming weeks. This tells me that the hoped for turn around probably will not be soon.

We will survive again. If we are wise we will be better businessmen after this dip in the road. This could be another way of phrasing
"That that don't kill you, makes you stronger."

I am sure the conversation will continue.

Sunny
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