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

To: BigBull who wrote (64071)	4/7/2000 2:35:00 PM
From: Big Dog	Respond to of 95453

Dig this oil patch adaptation of a widely used cyber term. (I'm jealous that I didn't think of this...) B2B = Bubba2Bubba SSB published a report titled "Clicking on Oilfield Services: Bubba 2 Bubba-Oil Patch e-Commerce". Oilfield e-commerce strategies are a relatively recent phenomenon, however it is already clear that their impact may be profound. We see tremendous potential for e-commerce efficiency gains, principally in workflow simplification, supply chain management, and transaction administration. Our initial, conservative estimate of annual industry cost savings is $4-$6 billion. In our opinion, immediate threats to traditional oil service companies appear limited, but technology laggards face longer-term risks. Due to peculiarities of the oilfield, such as non-standard technology, data intensity, and mobile work sites, we believe independent initiatives focused specifically on the O&G vertical are most likely to succeed. Of the traditional oil service companies, Schlumberger, Smith International, and National Oilwell appear to have the most advanced e-commerce strategies. Despite recent market turmoil, stock valuations of vertical B2B companies remain significantly above those of traditional oil service companies. We believe public offerings by e-commerce start-ups may create an acquisition currency that could jeopardize the independence of many traditional service companies. Moreover, we expect bricks-and-clicks alliances to yield a key competitive advantage.