Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Chas who wrote (19396)	4/16/1998 9:50:00 PM
From: Teddy	Respond to of 95453

NEWS snips from Offshore Data Teddy's Note: Don't let that wacko from Value Line fool ya, these stocks are going nowhere but down. Down. Way down. Then down some more. There is nothing but bad news in this sector and there will be more bad news tomorrow and even more bad news the day after that. Here's a small sample of what the future holds: HOUSTON: Drilling activity is forecast to accelerate and demand for construction, transportation and subsea services is expected to increase worldwide, according to speakers at the 22nd Annual International Marine/Offshore Industry Outlook Conference, which was held April 16. The underlying fundamentals of the industry are getting incredibly strong, speakers agreed. Bankers Trust Managing Director Robert D. Wagner Jr. acknowledged the industry is in an era of equipment shortages, and drilling contractors must focus on building new capacity with a premium paid for higher capacity equipment. Wagner forecast a rig newbuilding "boom" of "significant proportions," but cautioned that the reluctance to pursue newbuildings may be shortsighted, noting that the shortage of rigs is real. Overbuilding may inevitably result but not playing really isn't an option, he said. Wagner said drilling contractors must maintain efficiency and cost advantages that were developed over the last few years. Economic incentives like foreign shipbuilding subsidies and investment tax credits in the United States are not here today, but economic conditions are improving to the point that the attractiveness of this offshore industry is beginning to draw significant dollars, which will continue over the next few years, Wagner said. R&B Falcon's Chief Operating Officer Bernie Stewart said the ultra deepwater drilling market has brought new lifeblood to the industry. He said drivers of the deepwater market include high quality drilling prospects, recent technological advances in deepwater production - including floating production systems and subsea completions -- and the continued shrinking portfolio of commercial prospects. He said constraints to meeting expanding worldwide energy demand include the availability of deepwater rigs, the ability to attract and retain qualified personnel, and the ability of the entire offshore industry to create new deepwater technology. Read those three paragraphs again. Sounds like there was a little drinking going on at that conference. U.S. GULF: Diamond Offshore jackup OCEAN NUGGET completed a turnkey well with Sonat Exploration. The rig is waiting on weather to move to West Cameron Block 181 for a turnkey well with Equitable Resources. The unit is under contract with ADTI to early September. Let's see: "gulf" + "jack up" + "turnkey." Anyone still want to own DO? ALASKA: Alaska's Department of Natural Resources, Division of Oil and Gas, is inviting the public to comment on the upcoming Cook Inlet Areawide Oil & Gas Lease Sale, which is scheduled for February 24, 1999. The state deemed that the sale is in the best interests of the state and meets Alaska Coastal Management Programs consistency requirements. Comments are due by 5 p.m. on June 29. The sale area covers approximately 4.2 million acres, and contains all unleased state-owned lands in the Cook Inlet area. The sale will include 815 tracts ranging from 640 acres to 5,760 acres. "The sale area... contains all unleased state-owned lands in the Cook Inlet area." I guess they realized that if they don't unload it all A.S.A.P. they won't be able to find any suckers to bid. U.S. GULF: Houston-based Ceanic Corp., formerly American Oilfield Divers, chartered a second vessel from Tidewater. Ceanic chartered the TIDEWATER INVINCIBLE for three years with a purchase option. Ceanic will rename the vessel CEANIC INVINCIBLE when it begins operations with the vessel late in the fourth quarter. The 234-foot vessel primarily will operate out of Ceanic's deepwater port in Fourchon, La. The vessel has dynamic-positioning capability and can be upgraded to four-point anchoring operation. Ceanic intends to use the vessel to support four-point diving operations and also will outfit the vessel with one of its ROV systems to support intervention operations in the U.S. Gulf. Earlier this month Ceanic chartered the TIDEWATER ILLUSTRIOUS for three years with a purchase option. The ILLUSTRIOUS, which currently is working in the North Sea, will be renamed CEANIC ROVER and will begin operating out of Ceanic's Fourchon base early in the third quarter. I've never said anything nice about boats before... and i'm not going to start now. U.S. GULF: Kerr-McGee proposes to remove Platform "A" in High Island Block 34 using explosives. The structure is located in 35-feet waters. You know things are bad when they start blowing up platforms. Is that to make sure no one cheats on the OPEC production cuts?