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

To: Tomas who wrote (72642)	9/7/2000 10:26:26 PM
From: Tomas	Read Replies (1) \| Respond to of 95453

World trends: Operating Outlook - WorldOil Magazine, August issue Given elevated oil prices and the expectation that they will remain relatively high, plus the fact that major oil companies are finally opening up their underspent budgets, we expect significant increases in upstream activity worldwide. This will be particularly true for North America and South America. Overall, we expect global drilling to jump 35.3% higher, to 66,395 wells. In North America, Canada's cautious rebuilding has turned into a blizzard of activity. Soaring prices are boosting results, drilling levels and spending plans, hence the 32.5% increase expected. In Mexico, there is an even greater push toward gas development, while the big oil project remains expansion of Cantarell field offshore. Look for a 6.4% gain in Mexican wells. South America is competing with other regions for foreign investment, which the region's good discoveries and gas development plans will require. Following Brazil's successful E&P sector opening, most countries are making contract terms sweeter. Strong rebounds in Venezuela, Argentina and Brazil will boost drilling nearly 50%. Western Europe has a split personality. Countries dependent on North Sea activity have not seen their E&P sectors benefit from high oil and gas prices. Conversely, countries with higher levels of onshore E&P (Italy, Germany and France) are recovering. Overall, the region will be down 6.2%. Signs of recovery are also beginning to appear in Eastern Europe and the Former Soviet Union, where drilling is expected to gain 11.2%. Soaring oil prices have breathed new life into many of the former Soviet republics, providing cash to boost drilling. Last year was particularly rough for Africa, where hydrocarbon wealth is tempered by political turmoil. Nonetheless, hope is emerging; West Africa continues to have one of the highest exploration success rates globally. In the north, Egypt and Libya are looking at a massive gas development project. Thus, a 4.2% increase is expected. Disciplined crude output has paid off handsomely for the Middle East. Windfall oil revenues and conservative spending are cleaning up countries' balance sheets. However, greater domestic energy demand in these nations may affect oil exports - another reason for state oil companies to emphasize natural gas development projects. The outlook is for moderate (8.2%) growth in drilling. In the Far East, China is drilling at full capacity, hoping to keep crude output steady. The result is about 10,000 wells annually, but no growth above that level. Throughout the rest of the region, economic recovery continues, and good activity gains are expected in Indonesia, India and Thailand. Overall, the region should be up about 5%. South Pacific E&P cooled off from 1998's healthy level. Despite better production revenues from higher prices, operators remain tentative. There is a question of what to do with the bountiful amounts of gas found in Australia in recent years, and that may be part of the reason that survey data indicate that the region will slip another 3.6%. The accompanying tables show global E&P statistics, plus World Oil's revised 2000 drilling forecast, by region. Full article: Price does matter worldoil.com