Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Teddy who wrote (10284)	1/31/1998 9:06:00 PM
From: Tulvio Durand	Read Replies (1) \| Respond to of 95453

... i hope drillers stay down untill the March auction so i can unload some tech and buy more of this sector. Are you anticipating tech rise in next few weeks? Or do you see OSX having formed a deeper bottom than techs, and consequently offers a higher value? Or both? Tulvio

To: Teddy who wrote (10284)	2/1/1998 12:57:00 PM
From: HH	Read Replies (2) \| Respond to of 95453

Teddy , Here is some long term fundamentals: scalped from MF n this week's issue of World Oil they had an article entitled: Outlook for oil services industries? Gushers! The companies in the oil service sector of our industry that survived the devastating depression of the past 15 years or so are going to get very good news. This is according to the Oil Service Industry Research group of the highly esteemed Simmons & Company International. In a recent report, this Houston-based investment banking firm called attention to the fact that the oil service industry today is as tight as an industry can get, with virtually every aspect of the business out of spare capacity. Backlogs are soaring for rigs, seismic crews, logging units, supply boats and most other products. Matthew R. Simmons, president of the company, told a recent National Ocean Industries Association meeting that, over the next ten years, his analysis indicates production will have to increase by 42 million bpd to meet expected demand. The cost to add that much new production would be roughly $2.5 trillion. With the oil service industry currently out of spare capacity, it will need to expand even more to meet that demand. An additional 450 offshore drilling rigs would be needed to achieve what Simmons calls "rig equilibrium." The cost of those rigs including deepwater rigs, semis and jackups, would be around $88 billion, at today's prices. That number would increase to $123 billion assuming 5% annual inflation, plus an additional $12 billion for offshore service vessels and another $12 billion for drilling equipment. Simmons concludes, "It is clear that the industry is going to need a lot of money to finance expansion, and that the winners and losers will be determined by who gets the right mix of financing sources."ÿ Stay Foolish and prosper, :) TMF Spirit, Motley Fool chat hostess, every market day TheMotleyFool