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

To: wggm who wrote (18780)	4/11/1998 9:41:00 PM
From: Challo Jeregy	Respond to of 95453

wggm, if you didn't read dawggies' post, I would suggest you do. He's your "first hand knowledge". exchange2000.com challo

To: wggm who wrote (18780)	4/11/1998 10:15:00 PM
From: Douglas V. Fant	Respond to of 95453

wggm, Let me ask our Drilling Manager about rig rates worldwide on monday, and I will post his response. Also I am sure that day rates will "give back" a bit of their meteoric rise. But at the same time, do not underestimate the service companies' ability to cut costs. While it will not be a perfect one-for-one situation already most of the service companies carry a less debt than say three years ago- so debt servicing costs have dropped (barring a couple of companies that are in an acquisition mode). So I assume that Simmons is right- rates have already faded or will fade a bit- but a worldwide 95.6% rig utilization rate suggests that noone in the service industry will be "hurting". And as Kenny Rogers sang in the "Gambler" "Every hand's a winner, and every hand's a loser"; IMO the pullbacks in price by the various stocks in this group overstate the impact of lower day rates on the industry... Sincerely, Doug F.