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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 (32202)	11/28/1998 3:37:00 PM
From: Elmer	Respond to of 95453

Marc, you are correct, but the Reed Rig Census peaked in 1982 at 5644 rigs and the 1997 rig total was 1665. Even though technology has dramatically improved efficiency, it probably can't make up for 4,000 less rigs available to work. Not too long ago, using data from a couple of different sources, I calculated that from 1979 - 1997, finding and development spending in the U.S. grew at a compounded annual growth rate of about 16%. During this same time frame, non-opec oil production only increased about 1.5% annually. I realize this is not an apples to apples comparison, but I do feel it shows that oil companies will have to continue to spend $ in order to increase production. Elmer