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

To: Bazmataz who wrote (19412)	4/16/1998 8:11:00 PM
From: Lucretius	Respond to of 95453

NE has 7 deepwater jackups in the north sea. Most are specialized "harsh environment" rigs and thus go for a premium. Occidental has 3 of them. I don't recognize the other operators, but knowing NE they are major players and not the type ot put off drilling because of cost concerns. Last I talked to NE (about 2 weeks ago), they perceived dayrates in the North Sea as increasing (ALSO--keep in mind that NE's Ks are longer term than most drillers. Most of the jackup fleet that was rolling to new K this year were rolled during the 1st qtr. NE may miss the slowdown(if there is one) completely. Although if dayrates suddenly rise, they will (and have in the past) miss out on the suddden windfall. However, L-T Ks over the L-T provide more stability and are more favorable in my opinion. -Lucretius