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

To: Paul Angell who wrote (30588)	10/10/1998 2:05:00 PM
From: Mike from La.	Read Replies (2) \| Respond to of 95453

Article in today's New Orleans Times Picayune says that none of the major oil companies in La. are making significant cut backs in their offshore, mostly deepwater programs. Including Exxon's 1.2 billion Hoover-Diana project, projects are described as being "on target", Mobil described the effects of the oil price as nominal, and that Mobil is maintaining its $5.3 billion expenditure program. Chevron said that it has delayed some "non-essential" projects such as minor construction and buying new vehicles, but has preserved its capital budget. Amoco has not canceled any projects due to low oil prices. However, Chevron said that belt-tightening would be needed if low oil prices persist for "an extended period of time." I don't know what the magic number for oil prices to support deepwater drilling, but I get the feeling that anything over $15 is a green light, and even if it goes below, there is a wait and see attitude before cutting back. Deepwater drillers should be giving good earnings reports, since almost all projects are going forward. Mike from La.