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

To: Czechsinthemail who wrote (13970)	3/6/1998 2:12:00 PM
From: Teddy	Read Replies (1) \| Respond to of 95453

RE: ...If permits are up 20 - 25%, the indications of strong demand could further strengthen dayrates, which in turn flows through to the bottom line very quickly for the shallower drillers... Yeah, saw the permits up 20 -25% part in another article about a week ago and asked Big Dog about it. My question was something like: "If rig utilization is over 90% now, does that mean that there are not enough rigs for all the new permits?" His reply was basicly that not every permit results in a hole being drilled. A company might plan on drilling 4, but if the first two are dry they might give up and not drill the other two. Also, if they drill two and hit oil/gas, they might not use the drilling rig for the other two, they could just drill them from the platform. But yes, as it stands now there is plenty of work for rigs in the gulf.