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

To: Teddy who wrote (15060)	3/17/1998 12:57:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 95453

Teddy- >>However, Kreps noted that Noble has very little exposure to the Gulf of Mexico.<< You're right...very bullish comment. Kind of like saying, "Dave and 4 others were in the car that went off the cliff, but dave wasn't driving and he had his seat belt on...when they pulled him out of the wreckage." PK...it's only money.>g<

To: Teddy who wrote (15060)	3/17/1998 1:04:00 PM
From: Lazlo Pierce	Read Replies (2) \| Respond to of 95453

From briefing.com <<OIL DRILLING STOCKS. Stocks in the oil sector are all under water today following a downgrade of the exploration and oil producing sector by Merrill Lynch. Anything connected with oil has seen its price slashed today as Merrill is making a call on the oil and gas exploration field due to the sharp drop in oil prices. In the process, oil drilling and oil servicing stocks have been dragged down by the negative view as the sentiment in the oil sector has turned and remains negative as Western Texas Intermediate crude trades just above $13 a barrel. To be sure, the short-term outlook for oil prices is not encouraging as OPEC continues to quibble about production quotas and Asia is far away from seeing their economies turn around. However, with oil and gas reserves remaining at a fixed level, the demand for oil driller and oil services companies will not go away, at least not in the near-term. Drillers and services companies will need to make adjustments to their operations to stay profitable during the rough patch; however, they've had plenty of warning of what the future looks like and thus we expect them to act accordingly. While the sharp decline in oil prices will take off some of the premiums in the day-rates that many drillers have been able to negotiate when existing contracts expire, the advantage remains with the oil drillers as day-rates will eventually turn up again. The fact that many of these issues are off the highs reached late last year before the Asian crisis began makes this sector very attractive, although short-term it remains full of potholes. Nonetheless, for the longer-term investors shares of many diversified drillers and oil services companies are an interesting play in this sector as oil prices can't/won't remain this low for a prolong period of time.>> Dave