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

To: William L. Oppenheim who wrote (18948)	4/14/1998 3:02:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

William, I agree with you-Even with an economic slowdown in parts of Asia, many other areas in the world are expanding economically- USA, Europe, South America and Africa for instance. With the USSR's collapse, this is the Golden Age of Capitalism. We are in a period IMO like Rome was in the First Century AD after it had defeated its main rivals, the Carthiginians and Parthians (and the Germanic hordes to the North were not yet too ferocious). That is, the US Economic Model is the model to emulate if you are going to move a country ahead. That Model usually leads to greater economic growth- and oil is the lifeblood of Capitalism..... So demand will continue to rise. Now I should point out a trend in oil prices which has persisted since the Titusville, Pennsylvania Discovery in 1859 set off the oil era. Oil prices have fallen in real dollar terms literally from the start of the oil era. But lower finding costs and other efficiencies have also driven the total cost of finding and producing oil lower too.... And to find oil one needs to drill oil wells.... So the demand to drill is here. The key IMO, to oilfield service stocks slowing down will be overbuilding of new rigs by the service companies. I do not see that occurring- only a few major deepwater rigs are in the offing- and they appear to be inadequate IMO to service the growing number of deepwater concessions, plays worldwide that are being let by governments.... Good luck to us all in drillers week! Sincerely, Doug F.