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

To: marc chatman who wrote (16264)	3/24/1998 9:14:00 AM
From: shadowfax	Respond to of 95453

After commercial break rdc and glm on squawk box

To: marc chatman who wrote (16264)	3/24/1998 9:17:00 AM
From: Teddy	Read Replies (2) \| Respond to of 95453

Marc, Noble Affialtes (NBL) is NOT Noble Drilling (NE). NBL is an E&P.

To: marc chatman who wrote (16264)	3/24/1998 9:29:00 AM
From: marc chatman	Respond to of 95453

CNBC Interview of CEO's from GLM and RDC: 1. Luigs (GLM): business has continued to grow despite fluctuation in oil prices. the additional 2-3 million barrels excess at the margin has an impact more on market psychology than anything else. short term fluctuations in oil haven't had an impact. if oil stayed below $15 for an extended period and industry believed it, maybe exploration would slow. supply/demand for rigs has tightened allowing drillers to raise prices. said last year rig prices averaged $65k/day; sees over $80k/day this year. 2. Palmer (RDC): 60-70% of current business is from nat. gas, and prices have been strong. if oil prices stayed low for an extended period, then exploration would slow, but he doesn't see it. the 2-3 million barrels per day excess supply is not that much and is close to the balance, and he thinks the supply/demand balance eventually tightens, so producer cheating on quotas would be only a short-term problem, if at all. says pricing power for the drillers is short-lived -- customers have more power than drillers.