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

To: Daniel M. Whipple who wrote (15051)	3/17/1998 1:29:00 PM
From: Tulvio Durand	Read Replies (4) \| Respond to of 95453

Falling oil prices means reduced revenue to the producing country. The lost revenue can be offset by increased production, and indeed Venezuela et al are doing just that. And more oil must be drilled to meet the increased production demand. So falling oil prices should be good for oil drillers and rig builders. Note that day rates for rigs have climbed to the highest levels in history, and thus support support the theory. Conversely, when oil became very expensive after the oil embargo -- oil-demand decreased and a lot of drillers went out of business. The now-falling OSX has to be a temporary aberration. Tulvio