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

To: BigBull who wrote (58570)	1/15/2000 10:28:00 AM
From: Donaldm	Read Replies (2) \| Respond to of 95453

Wonder what Old Larry "I hate the oil industry" Kudlow thinks of the current rise in the price of oil?? Donald

To: BigBull who wrote (58570)	1/15/2000 1:59:00 PM
From: Douglas V. Fant	Read Replies (3) \| Respond to of 95453

Big Bull, Casing, tubing, and pipe- the grist of oil well drilling.. and then you'll like the contents of this interview of Richard Spears from Oklahoma- go to audioinvestor.com to hear the full interview. We just posted it late yesterday.. Note who Mr. Spears feels will do well in the tubular goods arena... Here's the synopsis from the Website: OPTIONS The energy sector should recover in 2000 according to Richard Spears of Tulsa-based Spears & Associates The following interview was conducted by Joe Dancy of the Internet Financial Connection on the Silicon Investor - Start Audio Now: MANY SEGMENTS of the upstream oil and gas industry will fare better this year, as oil and gas companies are poised to increase their E&P budgets due to recent recovery in commodity prices according to Richard B. Spears, Vice President, Spears and Associates Inc. Year 2000 "will be a year of solid growth" in the energy sector according to Spears. In the annual Oilfield Market Report published by Spears they note that 80% of the energy market segments that they track will expand in 2000. Data for the Report is gathered from numerous interviews, and from analysis of information filed by publicly traded companies. Spears notes that many oil service companies in the US and Canada were running at full capacity in October, November and December. Leading the recovery are the sectors strongly influenced by North American drilling, such as land contract drilling, pressure-pumping services, rental and fishing, inspection and coating. Spears expects revenues in these sectors to climb about 20% or more in 2000. Well servicing and artificial lift will also see double digit growth as the recovery from 1999 continues. And these companies are adding staff to meet increasing demand - one Oklahoma- based electric submersible pump manufacturer is advertising on the radio for second and third shift production line workers. Of all the companies that will do well in the sector this year Richard thinks that Weatherford International (NYSE: WFT) stands to gain the most over the next 12 months. It is a leader in three of the six markets showing the greatest recovery promise. As drilling increases so will demand for rigs and related equipment. Among the land contract drillers UTI Energy (AMEX: UTI), Grey Wolf Drilling (AMEX: GW), Helmerich & Payne (NYSE: HP) and Precision Drilling (NYSE: PDS) will be successful in expanding their business. These companies are well positioned and well managed according to Spears. Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL), and BJ Services (NYSE: BJS), will do well in the pressure pumping arena according to Spears. Smith International (NYSE: SII) will likely fare well in the rental and fishing industry, while Maverick Tube (NASDAQ: MAVK) and Lone Star Technologies (NYSE: LSS) will do well in oil country tubular goods. Spears also likes Weatherford and Universal Compression in the compression services sector, an area of the energy sector that has shown steady and consistent growth over the last few years. Merger activities seen within the industry in recent boom years is unparalleled in the industry's history, and Spears believes that a strong argument can be made that the last thing a service company should do during a boom is to acquire other companies. It almost guarantees paying the highest price for a company, and due to the cyclical nature of the industry in many cases the acquiring company finds that the business soon deteriorates. Since we have had such a poor last few years, Spears is of the opinion that merger or acquisition activities might be very profitable at this stage as they can be integrated into a well-managed company in a growing but non-frenzied business environment. He also notes that technology has changed the face of the energy business: Geologists explore now on computers. Wells are purposely drilled meandering into multiple pay zones as they are sunk, or even are drilled horizontally. The product is treated using computer controlled equipment. And even fiber optics are being proposed for use in well testing and monitoring, although no specific commercial applications of fiber optics have been introduced to date. Recorded 1/00.