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

To: Czechsinthemail who wrote (23407)	6/4/1998 1:03:00 PM
From: Grommit	Read Replies (1) \| Respond to of 95453

Baird, Thanks for answering. Rig utilization in the Gulf is remaining high in part because companies have been reducing their dayrates to keep rigs operating. Certainly, but why? I think the big difference between the Gulf and other areas is relatively more rigs competing there and comparatively shorter contracts than internationally. Shorter contracts would cause the average rates to converge more quickly to the existing rate. But why are the dayrates falling? Are projects cancelled because they are more costly in GOM than RestOfWorld? Why is Rig Supply/Demand more out of balance in GOM? Or is it? What is rig dayrate in GOM as compared to ROW? Are we just equalizing -- or is the GOM weakening? (excuse the newbie questions)