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

To: Chuzzlewit who wrote (2675)	11/4/1997 6:33:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Hi Paul, I believe that this company will outpace the drillers. Nice to see you here, but I'm curious about why you think VRC would outpace the drillers. As other posts have pointed out, the drillers, particularly the deep and ultra-deep offshore drillers, have the greatest imbalance between demand and supply, which is esimated to continue for some time. The increase in day rates for the drillers goes pretty much straight to the bottom line. Once they meet their fixed costs, any price increases above that tend to reflect on the bottom line. There is also very heavy barrier to entry, particularly around the large capital commitment and long lead time to get new drillships built. Good luck to you, Baird