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

To: Big Dog who wrote (65606)	5/2/2000 2:17:00 PM
From: The Ox	Read Replies (2) \| Respond to of 95453

Shell's Rothermund Sees More Deep-Water Drilling: Comment Houston, May 2 (Bloomberg) -- Heinz Rothermund, managing director of Royal Dutch/Shell Group unit Shell E&P International BV, comments on deep-water oil drilling off western Africa. Shell defines deep water as 500 meters, or about 1,550 feet. ``Over 30 billion barrels of oil equivalent have been found in deep water. . . . Many companies are exploring deep water. We are developing beyond 1,000 meters and exploring beyond 2,000. Going beyond 3,000 meters is a realistic technical goal.'' ``OPEC restraint may have pushed oil prices higher than they have been for some time, but we cannot assume high prices are here to stay. Our analysis of the marginal cost of non-OPEC production suggest a long-run price around $14 a barrel.'' ``Deep-water drilling is an expensive business which requires spreading the risk over a variety of plays and prospects. . . . The small players will require the big players who are powerful enough to come up with big percentages of financing.'' ``Competition off Africa is huge. Everybody is there and you have to find niches. We've got millions of acres we're trying to divest and get different companies into. The interplay between the few big players and the small players is a thing to stay.'' May/02/2000 13:05