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

To: Big Dog who wrote (23898)	6/11/1998 9:18:00 PM
From: NucTrader	Respond to of 95453

Jeez....I go away for a week, come back to find 337 posts on the Strictly: Drilling thread, the sector and the market in general in shambles!

To: Big Dog who wrote (23898)	6/11/1998 10:50:00 PM
From: SliderOnTheBlack	Respond to of 95453

Big Dog; on your scenario - would the major oils be a play...? ...based upon them being able to lock in real cheap long term contracts now, and/or being able to ''renegotiate'' cheaper terms on existing contracts ? The major Oil's are in a position to weather the storm better than the drillers and stand in a superior position to lock in ''cheap costs'' that will run over into a period when crude prices recover which would give them a superior spread. Also; does the ''converse'' ever exist when crude rises and a driller has a long term contract at less than current market value with a major oil company; can they, or do they ''bump'' the major oils into a higher contract ? ...just asking, but think I all ready know the answer - unfortunately... I am assuming that those companies; especially drillers who are debt free or low debt ridden like ESV are in a better position to ''ride'' out the storm and report decent earnings versus high debt/levereged companies. In the shallow GOM, deep water and in service sectors - what companies are the least debt ridden and stand to be in the best position to benefit from being ''lean & mean'' going into this downturn. My impression is that ESV is in a strong position vs. say GLM who has higher debt loads... In boats TDW is debt free with tons of cash versus HMAR for instance - comments anyone on this factor ... who are the financial bellweathers in each sector and who are the highly leveraged companies ?