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

To: chirodoc who wrote (3977)	11/29/1997 11:04:00 PM
From: XPLAY	Read Replies (1) \| Respond to of 95453

Louis Rukeyser's Wall Street Newsletter December 1997 Question: What's the outlook for oil-service stocks? Capt. William Bennett, Sterling, Va. Answer: Many of them, including Halliburton, Global Marine and Rowan (which we covered in July 1996) have rallied tremendously, and the good times should continue for at least a short while because of drilling-rig shortages that are unlikely to be alleviated soon (rigs take a long time to build). The capacity-utilization rate for offshore rigs is more than 95% overall and close to 100% in the North Sea and Gulf of Mexico; major oil companies continue to expand their exploration budgets, driving demand of drilling rigs and increasing daily rents on the biggest rigs to nearly $100,000, about double what they were two years ago. Prudential Securities analyst Jeffrey Freedman says global oil consumption is expected to continue to increase at a rate of 1.5 million to 2 million barrels a day. At that rate, he says, oil companies must maintain their high level of exploration and development activities, which should create a favorable business background for oil-services companies over the next several years.