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

To: Broken_Clock who wrote (28250)	8/24/1998 8:29:00 PM
From: Teddy	Read Replies (1) \| Respond to of 95453

RIG COUNT: Teddy's note: Hi to all my old friends. Has everyone forgotten what it takes to make these stocks go up? i am totally amazed that there are still people that think there is even a remote chance that this sector will recover in 1998. These stocks still have 30 to 50% more to decline. Think i'm wrong? Read the latest Rig Count (dayrates will continue to fall if there is more than 1 rig uncontracted) and then look at a five year chart of any driller. Oh, and those of you that think you know the "book value" or "net asset value" of these stocks might want to check what used jack ups are selling for today: cut your "book value" in half. And don't count on a short term jump in oil prices to help this sector: small E&Ps are hurting, more projects will be cut. There is little interest in the up coming GOM Lease sale. There will be less drilling in the second half of the year. There is no good news for this sector and lots of bad news... maybe 1999 will be a better year. August 22, 1998 Offshore rig count in free fall HOUSTON: The worldwide offshore rig count fell by nine since last week, the largest week-to-week decline recorded since rig demand began softening in June. With the nine-rig decline, worldwide offshore rig utilization fell below 90 percent for the first time since May 1996. This week, 541 of the world's 608 mobile offshore drilling units are under contract. Worldwide offshore fleet utilization is 89.0 percent. Fleet size declined by one due to the constructive total loss of a Gulf of Mexico jackup in heavy weather. The Gulf of Mexico offshore rig count declined by five since last week. With 139 of the 173 mobile offshore drilling rigs in the area under contract, U.S. Gulf offshore rig utilization is 80.3 percent. The European offshore rig count is unchanged from last week. Of the 113 offshore rigs currently deployed in European waters, 109 are under contract. European offshore rig utilization is 96.5 percent. Teddy owned stocks in this sector last year. He sold them all more than four months ago and posted when he did. Although they have declined 30 to 50% since then, he is not at all interested in buying at this time. Teddy does not short and thinks there are some cool people on this thread.