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

To: marc chatman who wrote (30906)	10/19/1998 8:33:00 PM
From: Jamey	Read Replies (1) \| Respond to of 95453

News release concerning R&B Falcon (FLC) and Vastar resources. (VRI) biz.yahoo.com Santiago

To: marc chatman who wrote (30906)	10/19/1998 9:19:00 PM
From: Broken_Clock	Respond to of 95453

Monday October 19, 8:21 pm Eastern Time Aug offshore drilling shows biggest drop in 12 yrs NEW YORK, Oct 19 (Reuters) - Rates operators can charge for offshore drilling rigs showed their biggest monthly drop since June 1986 in August as oil prices remained weak, according to contractor Global Marine Inc's (NYSE:GLM - news) survey. Worldwide rates for offshore rigs fell 9.6 percent to 67.6 percent of the cost of building a new rig, Global said on Monday. Particularly hard hit was the Gulf of Mexico, where rates fell 11.5 percent from July to 42.35 percent of the cost of a newbuild, with daily rates for shallow water jackup rigs, which drill smaller prospects, falling below $20,000, just a few thousand dollars above daily operating costs, Global said. ''The offshore drilling business continues to suffer from low dayrates, and shallow-water drilling markets worldwide have been particularly hard-hit,'' said Global chief executive Bob Rose. Rates for North Sea rigs fell 9.5 percent to 75.56 percent of the cost of a newbuild, in West Africa they dropped 8.5 percent to 66.07 percent and by 6.5 percent in Asia to 62.23 percent. Demand for deeper water semisubmersible rigs was down, but the market remains relatively buouyant, falling just 2.2 percent to 62.73 percent of a new build, Global said. Shares of oil drilling and service companies have reflected the decline in activity and are amongst the worst performing sector on Wall Street. The Philadelphia Oil Service Index has dropped from 114.37 points at the end of 1997 to 60.39 points now as oil prices plummeted to 12-year lows earlier this year and have remained subdued since.

To: marc chatman who wrote (30906)	10/19/1998 10:37:00 PM
From: diana g	Read Replies (1) \| Respond to of 95453

Re: Cape Town Conference --- Thanks, marc! I looked and looked for that. I was beginning to think I had dreamed it! -------------------------------- Re: Venezuelan Statement -- As mentioned a while back, sometimes these guys say odd things --- or what seem at first glance to be odd things. It seems counterproductive for Venezuela to announce 8+ months in advance that they're going to (maybe) open the taps, driving down the price. Why do that? Maybe to use the fear of low future oil prices to keep other (non cooperating) producers off balance, discourage development of competing wells, and thus maintain market share? I think it is a good strategy for the big producers who have low production costs to keep one hand on the tap and a hard eye on the other producers. It's the best way I can see to prevent the emergence of the thing you and I and the producers all fear most --- a true Free Market in Oil. (Shudder!!) From the end of this article biz.yahoo.com Here is a quote: ..."Each time OPEC producers cut production they also lost market share; while a period of sustained low prices would force some of the higher cost non-OPEC producers to reduce their output too," he said. "This is a new era in the oil market in which oil might stay down for some time," Varzi said. "Lower prices have their own supply and demand curve and (would result in) substantially lower non-OPEC production on the five-year view." ------------------------- Interesting situation!! I think we may soon see new agreements from OPEC and non-OPEC producers. regards, diana