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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Heretic who wrote (48936)	8/5/1999 9:08:00 PM
From: Bernie Diamond	Respond to of 95453

Good point. Was it only just over a year ago that the industry couldn't find enough experienced hands to man all the working rigs. I remember how the Parkers (PKD) coddled all their workers then, and how rampant "stealing" was going on from company to company. With the right incentives, they'll be back. I have the feeling its in their blood. :-) Bernie

To: Heretic who wrote (48936)	8/5/1999 9:42:00 PM
From: Tomas	Read Replies (1) \| Respond to of 95453

Oil companies increase spending - Financial Times, August 4 By Hillary Durgin in Houston Oil and gas companies increased their capital spending on exploration and development worldwide by 5 per cent to $83bn in 1998, despite a collapse in oil and gas prices that hurt revenues, operating profits and cash flow, according to an industry survey by Arthur Andersen. The survey tracked the performance of 182 publicly traded companies. As a group, the companies account for an estimated 85 per cent of total US crude oil and natural gas liquids reserves, and 64 per cent of total US natural gas reserves. The group also includes 51 companies headquartered outside the US. Companies increased their spending even as they experienced a 24 per cent decline in worldwide revenues from oil and gas producing activities to $124.6bn in 1998 as a result of the collapse of commodity prices. In addition, worldwide after-tax profits from exploration and production activities declined 87 per cent to just $4.6bn. Of the 182 companies in the survey, 100 reported after tax losses in 1998. Declining oil and gas prices forced the survey companies as a group to record more than $17bn in non-cash impairment write-downs of their oil and gas properties in 1998. Despite that financial weakness, spending worldwide increased by 5 per cent as companies either were slow to trim budgets or honoured prior commitments. In other instances, particularly involving companies with strong balance sheets, management took a long-term view of prices and chose either not to curtail spending because of their price expectations or to continue to spend on large projects in which it would be risky to reduce investment, the survey found. Spending on exploration and development activities in the US was almost flat at just over $29bn. Total US capital spending declined 2 per cent to slightly more than $37bn. Capital spending by the large companies declined 15 per cent in the US, but increased 22 per cent in the rest of the world. By comparison, independents increased their capital expenditures in the US by 7 per cent in 1998, while cutting back by 13 per cent outside the US. By region, total capital spending decreased during 1998 in the US, Canada, Latin America and Asia-Pacific, and increased in Europe and the Africa-Middle East area.