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

To: William L. Oppenheim who wrote (11014)	2/8/1998 7:48:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

William, Just to add to your comments. Most drilling companies are reluctant to build new rigs without firm, long-term contracts. Everyone is looking for leading indicators whether it's orders for new rigs, budgeting intentions by major oil companies, dayrates and terms for the latest contract announcements, and lease auctions. I think the yardsticks most people have tried to use, high dayrates and low oil prices, are not likely to work well, simply because the dayrates are such a small part of overall exploration costs and there is a long term need to replace reserves regardless of the oil price du jour. At least in the deep drilling, and probably throughout the offshore drilling sector, I think we'll see strength for several more years at least. I think the risk/reward relationship here is extremely favorable compared with most other stocks. Baird