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

To: Swede who wrote (8457)	1/16/1998 12:25:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Swede, Thanks for the Dain Rausher follow-up. This spells out the fundamental situation in a nutshell. Though I suspect all the drillers are likely to continue making money hand over fist for awhile, some are riskier plays -- particularly if oil prices continue to weaken. Though virtually all companies have sold off en masse, the deepwater drilling companies, IMHO have superior long term prospects. The combination of better economics on the deepwater drilling projects and an extended undersupply of rigs will keep dayrates high and utilization near 100%. Of course, most people simply watch the price of crude, try to forecast where it is going and extend that to project prospects for the drilling and oilfield services companies. For those with slightly longer term perspective, this is an excellent opportunity to pick up the best quality drilling companies at cheap prices and wait for the market to come around. I suspect Wickland is right that crude prices will bottom within the next month. Baird