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

To: Thean who wrote (5167)	12/15/1997 11:59:00 AM
From: bw	Respond to of 95453

We're definitely getting some good bounce off the lows..NE and MDCO both showing good strength. Five minutes from now? Who knows..<g>

To: Thean who wrote (5167)	12/15/1997 12:01:00 PM
From: The Perfect Hedge	Respond to of 95453

i thought shell and chevron said they WERE increasing spending.GD

To: Thean who wrote (5167)	12/15/1997 12:02:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 95453

Thean, try looking at a 120 day cart on MDCO and draw a support line from the low open on Oct.(day after big sell off) through the 12/1 low...Bingo!...MDCO at $17.75 I would definitely expect strong rebound from here...but I'd like to see this as the bottom from here on out. Know what I mean?

To: Thean who wrote (5167)	12/15/1997 12:29:00 PM
From: Lois R	Read Replies (1) \| Respond to of 95453

My happiness at your decision not to leave this board has prompted another "lurker" to respond. To hopefully perk up every-ones day, I got this off the energy business news at AOL. LONDON, Dec. 15 (Reuters) - Soaring rates for rig hire and a hectic pace of expl. will push the offshore drilling budgets of oil co. to a mammoth $16 Billion next year, idustry analysts say. While that amount has quadrupled since 94, actual increase in rig activity has been just 30%, underlining the extent of the cost explosion in the offshore svc. ind. Exec. at a leading British exp. co have privately complained their drilling cost have doubled in the las year, forcingt a reappraisal of their portfolio of dev. projects. But with oil co profits healthy, availability of rigs, not their rising cost is still the major limting factor in exp. For the big co's cost hasn't yet hit rig demand as the money is there" said Cochrane. What has affected work prog. has been sheer lack of availability. In the US Gulf, smaller operators were deferring exp. drillin in shallower waters in favour of maintenance and production drill work that was a less risky use of their money, he added. But in the North Sea and global ddp-water provinces potentially rich in undersea oil a lack of suitable rigs has begun to crimp the amitions of field operators. Rig demand should have risen by 15% this year, but available supply could meet only a third of that growth, says Petrodata. The long term shortfall will be around 65-100 rigs at minimum. "If you have rigs chartered for exp. next year then you are fine, if not then you are totally at the mercy of the sub-let mkt, said Cochrane. If you have long-term developemnt drilling to do then forget it" New entrants should bring the global deepwater fleet up to 100 from the current 60 drilling units by the year 2000, though shortages will continue because 20% of the fleet is still contracted to mid-water work. The problem has been worsened by the lack of qualified personnel in all upstream sectors. A Norwegian co. bldg a deewater semi-submersible has been unable to contract it out because potential customers doubt the firm can find experienced staff for the unit, idustry sources say Question to thread - last sentence...could this be a problem? Lois

To: Thean who wrote (5167)	12/15/1997 12:29:00 PM
From: Redman	Read Replies (1) \| Respond to of 95453

Thean, MAVK has a huge increase in short interest in November, according to a link given in a post a couple back. What is your take on this, could this be positive as they will obviously have to cover their positions. Any help would be appreciated. red

To: Thean who wrote (5167)	12/15/1997 1:39:00 PM
From: Chunsheng Zhou	Read Replies (1) \| Respond to of 95453

Monday December 15, 10:37 am Eastern Time Soaring costs and scarce rigs hit oil exploration By Sean Maguire LONDON, Dec 15 (Reuters) - Soaring rates for rig hire and a hectic pace of exploration will push the offshore drilling budgets of oil companies to a mammoth $16 billion next year, industry analysts say. While that amount has quadrupled since 1994 the actual increase in rig activity has been just 30 percent, underlining the extent of the cost explosion in the offshore services industry, they added. Executives at a leading British exploration company have privately complained their drilling costs have doubled in the last year, forcing a reappraisal of their portfolio of development projects. But with oil company profits healthy, availability of rigs, not their rising cost, is still the major limiting factor in exploration, says Stuart Cochrane of Aberdeen-based consultants Petrodata. ''For the big companies cost hasn't yet hit rig demand as the money is there,'' said Cochrane. ''What has affected work programmes has been sheer lack of availability.'' In the U.S. Gulf, smaller operators were deferring exploration drilling in shallower waters in favour of maintenance and production drill work that was a less risky use of their money, he added. But in the North Sea and global deep-water provinces potentially rich in undersea oil a lack of suitable rigs has begun to crimp the ambitions of field operators. Rig demand should have risen by 15 percent this year but available supply could meet only a third of that growth, says Petrodata. The long term shortfall will be around 65 to 100 rigs at minimum, they add. ''If you have rigs chartered for exploration next year then you are fine, if not then you are totally at the mercy of the sub-let market,'' said Cochrane. ''If you have long-term development drilling to do then forget it.'' ''The shoe may not be pinching in pure exploration, which is still in its infancy in ultra deep-water,'' said Norman Smith, of Smith Rea upstream consultants. ''But it is influencing the extent of development activity.'' The rig scarcity has been a boon for the seismic industry, added Smith, which has expanded as companies survey more thoroughly before committing to drilling. A slump in the drilling market in the late 1980's limited rig fleet expansion. The hunt for oil has since moved to deeper water and harsher environments which has led to considerable rig upgrading and new building. Companies have responded to shortages by underwriting the expense of rig construction either with long contracts for their use or by entering joint ventures, while others have formed partnerships to share rigs. Norway's state-owned Statoil (STAT.CN) and Saga Petroleum (SAPOa.OL) have combined to share five drilling units in a move to prevent rig shortages slowing work programmes, and other companies in the North Sea plan cooperative ventures. New entrants should bring the global deepwater fleet up to 100 from the current 60 drilling units by the year 2000, though shortages will continue because 20 percent of the fleet is still contracted to mid-water work. The problem has been worsened by the lack of qualified personnel in all upstream sectors. A Norwegian company building a deepwater semi-submersible has been unable to contract it out because potential customers doubt the firm can find experienced staff for the unit, industry sources say. Skilled geo-scientists, seismic analysts and other technicians are also in short supply, forcing up the cost of retaining staff and pressuring exploration budgets. ''There is a particular shortage here of skilled chemical and process engineers,'' said a spokesman for Britain's Offshore Contractors Association.