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To: bw who wrote (7910)	3/23/1999 12:20:00 PM
From: Thean	Read Replies (1) \| Respond to of 14427

bw, "the upcoming contract renewals for the deepwater rigs will be more favorable...since these deepwater projects are looking 1-2 years out." I think the above statement is partially flawed, especially the latter part about the 1-2 years out. Deep water contracts will be renegotiated at whatever on-going dayrate they can get. They may shorten the contract period or structure in more crude price based scenario options for renegotiation but the bottom line is they will get the on-going dayrate. No one, for it OPEC, major oil CEO's, President BC, you and me, can accurately predict what oil will be 1 year from now. I would do the averaging down on buying and averaging up on selling strategy to ensure profits are captured in this period of high expectation. We will find out if this period will hold beyond 6 weeks after the cheating data come out. <GG>