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

To: upanddown who wrote (18636)	4/9/1998 4:14:00 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 95453

Hi John, I agree with his "unlikely to overbuild" view -- at least for jackups. The long-term looks very strong for the jackup drillers because of this. As oil prices eventually climb and competition for rigs intensifies, the lack of newbuild rigs will pay off handsomely for those who have them. My thought is that in a rising demand and rising dayrate market, the shallower drillers will likely outperform the deepwater drillers that are the current favorites. I'm not sure how long it will take for that scenario to play out, but eventually it seems a good bet. Baird