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

To: Crimson Ghost who wrote (28555)	8/28/1998 7:18:00 PM
From: Elmer	Respond to of 95453

Check out the good news at Offshore Data Services. 6 more GOM rigs are under contract this week versus last week. Utilization increased from 80.3% to 83.3%. It's a start. Hopefully, dayrates will start leveling off. If we can get another good petroleum inventory report on Tuesday, I think oil and oilfield service stocks will start an upward move. Bottom line of this business is that oil companies will spend money on a project if the project meets its IRR and NPV targets. With the fall off in dayrates, more projects are meeting these targets. This is good for utilization. IMHO, once oil prices recover, even more projects will be viable and utilization will approach levels where pricing power goes back to the drillers. Elmer