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

To: Teddy who wrote (12744)	2/24/1998 7:46:00 PM
From: John Carpenter	Respond to of 95453

What I like about CHV is its aggressive stance toward exploration and reserve replacement. The stock was up almost 2 points today. Another interesting thing about CHV is that both in percentage terms and in points, the stock is trading closer to its 52 week high than its low. This is interesting given the fact that WTI crude is trading just above $15 a barrel.

To: Teddy who wrote (12744)	2/24/1998 9:26:00 PM
From: HH	Read Replies (1) \| Respond to of 95453

Teddy, the quote master, have you seen this? March/April 98 edition of Drilling Contractor. "Worry over low oil prices is 'folly', says Global Marine COO Ryan": "The dual skittishness over falling energy prices and the rising pace of offshore rig building is not only misplaced, its 180 degrees out of sync with reality. ryan said fears of soft oil prices are incredible folly. The real danger would be if prices soared too high and choked off demand for hydrocarbons and oilfield services. As for rig building, we shouldn't look back over our shoulders at the 1980's in fear that todays rig construction is too fast paced. The analogy doesn't hold." "Everyone's worried about oil prices going down, he said. They should be worried about them going up. Higher oil prices will kill demand and service companies." "While energy prices could soften in the near term, Ryan contends this would amount to a mere blip on a larger landscape of relentlessly rising demand. I don't care what happens in the next 6 months. Even if a short term drop in activity occurs, it will only be a temporary ebb before prices return to historic levels." HH

To: Teddy who wrote (12744)	2/25/1998 1:50:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Teddy, Clearly more oil exploration is in the works, but most of the headlines I've seen seem to be from the majors. They may be using the weak oil prices to increase their dominance in the E&P side of the business. Since they can still make a bunch on their refining and retailing activities, they can afford to push new deals on advantageous terms while independent E&P companies are feeling the squeeze from lower oil prices. As was the case with the Amoco, "have mercy on the oil companies" plea for lower drilling prices, I think what they are saying and what they are doing may be very different. What they seem to be doing is trying to get a lock on the world's best oil sites. I think it bodes well for the drilling companies, particularly the deep drillers that deal primarily with the majors. Baird