Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: paul feldman who wrote (32632)	12/8/1998 10:31:00 PM
From: articwarrior	Read Replies (2) \| Respond to of 95453

At least Falcon sees some hope out there. 12/08 21:52 R&B Falcon<FLC.N> sees drillers staying in profit HOUSTON, Dec 8 (Reuters) - R&B Falcon Corp, which operates the world's biggest fleet of offshore drilling rigs, said on Tuesday it expected its markets to remain weak in 1999 but that the offshore drilling industry as a whole should remain profitable. R&B Falcon President Steve Webster said reductions in oil companies' exploration budgets as a result of the lowest oil prices in 12 years would hurt drillers. "Clearly budgets have been cut and we think we're in for a year or so of weakness," he told the Arthur Andersen Energy Symposium in Houston. "However, the industry this time around is in much better shape. We've got a good backlog of business and we as an industry can maintain profitability through all this," he said. Webster said recent merger activity in the oil and gas industry could have a negative impact on oil companies' overall expenditure on drilling over a period of 12 to 18 months. "If you put an Exxon and a Mobil together, one of those drilling budgets has got to suffer severely," he said. In the longer term, however, mergers would not affect demand for oil and new wells would have to be drilled to meet that demand and to counteract depletion of existing reserves, he added. Webster said further consolidation of the offshore drilling industry was needed to make prices more resistant to reduced drilling activity. The number of drilling rigs active in the Gulf of Mexico fell by 20 between April and August, triggering a decline in daily rental rates for 300-foot "jackup" rigs from $65,000 to $25,000, he said.