Broker describes poor state of US marketNews // May 17, 2004
"Most owners report an even further decline in revenues compared to last year. There are hopes that we have finally bottomed out and this summer or fall 2004 may improve, but we also very easily could just bounce along this bottom for quite some time into the future," said Marcon in its most recent review of the market.
"Any increase in drilling activity looks to be 'modest' at the best, the company noted.
"According to the Baker Hughes US Offshore Rig Count, there were 94 rigs workingMarch 2004 compared to 99 in February and 105 in March 2003. Although crude oil prices are high and natural gas prices are around US$ 5.00 per Mcf, there is just not enough confidence yet to spur a dramatic increase in drilling plus overseas prospects are looking more attractive to many companies."