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

To: Chuzzlewit who wrote (17933)	4/3/1998 4:55:00 PM
From: waverider	Read Replies (1) \| Respond to of 95453

>>Luigs and many others have pointed out that the best environment for the drillers is one in which there is sufficient profit per bbl for the majors to continue funding exploration, but not so much to result in significant drops in production rates (which would decrease the need to find new reserves).<< I think we talked about this before, but you clarify for me why the majors would drop production rates if the price of oil jumped too high? Rick Hydrocarbon

To: Chuzzlewit who wrote (17933)	4/5/1998 3:01:00 PM
From: dougjn	Read Replies (2) \| Respond to of 95453

Paul, you stock picking wonderkind (seriously), what are your favorites AT CUURENT prices (e.g. RIG has recovered quite a bit already) in the oil service sector? Also, when would you expect earnings to peak? Don't they have to for most of the drillers before too long? In a year or two, anyway? I.e., rigs previously in oversupply, none built, low rates. Now tight supply, released at high rates. But once all are at the new higer levels, do the rates continue up? Or even if they do, do they continue to move up at a rapid pace?