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

To: RGinPG who wrote (18741)	4/10/1998 9:55:00 PM
From: marc chatman	Read Replies (2) \| Respond to of 95453

I don't know whether the Simmons report is correct or not, and I will look at it with an open mind. But something just doesn't smell right. If the exploration and production companies have this kind of leverage with rigs at their highest utilization rate, then how did rates ever get this high in the first place? And why would the E&P's agree to higher rates in a few months? All they have to do, it would seem, is say they have cut their budgets and need a rate decrease. Are the rig operators really so weak as to roll over without at least seeing if the E&P's are prepared to shut down their projects? I obviously don't understand how supply and demand work in the drilling business. Could anyone here please explain how rig negotiations work?

To: RGinPG who wrote (18741)	4/11/1998 12:30:00 AM
From: Chuzzlewit	Respond to of 95453

Ron, thanks for your analysis of the statement. I closely reread the report and I think you are right. I really wish these people would phrase their thoughts more clearly. I guess they feel that they sound much more erudite when ordinary folk pore over their words hoping to extract the real meaning. Eschew obfuscation! Regards, Paul

To: RGinPG who wrote (18741)	4/11/1998 2:32:00 AM
From: waverider	Respond to of 95453

>>But they are still guessing, based on the current price of oil. I have seen NO hard evidence for actual lowered rates in the GOM or anywhere else in the ocean.<< Ron, once again you clarify what is REALLY being said. Excellent Job. By the end of this month, either we will be very happy or these analysts will be very red faced. On second thought, analysts are expected to screw up...but it's O.K. as long as they are following the other lemmings. Where can I get a job like that? Wait, I know...nah, I won't go into it. I'm leaving one like that soon anyway.