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

To: articwarrior who wrote (32633)	12/8/1998 10:38:00 PM
From: kumar L chalasani	Respond to of 95453

Weatherford sees recovery from Q3 1999 HOUSTON, Dec 8 (Reuters) - Weatherford International Inc chairman Bernard Duroc-Danner said on Tuesday a recent round of downsizing and cost-cutting in the oilfield services industry had set the stage for an earnings recovery in the second half of 1999. ''Just on the cost side, probably around the second quarter, the industry will bottom out and around the third quarter you will see the beginning of a recovery in terms of earnings,'' he told the Arthur Andersen Energy Symposium in Houston. Weatherford and other companies that provide services to oil and gas companies have axed thousands of jobs in recent months in anticipation of reduced exploration spending by oil companies next year as a consequence of weak oil prices. Oilfield service stocks have fallen sharply this year, mirroring the decline in oil prices.

To: articwarrior who wrote (32633)	12/8/1998 11:26:00 PM
From: Gottfried	Read Replies (1) \| Respond to of 95453

arcticwarrior and all, can someone please explain why oil company mergers will lead to reduced drilling requirements? I understand the dependency on the price of crude. If mergers do not affect demand, why would they affect the amount of drilling? The article said "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. Gottfried