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Gold/Mining/Energy : Trico Marine Services (TMAR) -- Ignore unavailable to you. Want to Upgrade?

To: Don Westermeyer who wrote (233)	4/6/1998 4:17:00 PM
From: Robert T. Quasius	Read Replies (1) \| Respond to of 1153

It is my understanding that the few boats coming on-line this summer are already under contract, and thus are already a part of the demand and supply equation. Also, if day rates come down, older boats are often retired, because they command lower day rates to begin with, require more maintenance, fuel, etc., and are less in demand by customers. This tends to put a floor under day rates, because supply will dissipate. I don't foresee a lot of boats coming into the marketplace, because of constrained U.S. shipbuilding capacity. Any boat operating out of U.S. Ports must be U.S. built, under the Jones Act. The main factor IMO is the continued drilling for oil and gas. As long as drilling activity is very strong, day rates will remain high.