Show Three Important Considerations One thing that has worried investors is the possibility that Congress ss may pass legislation eliminating or drastically reducing reducing re reo re- re the tax advantage on foreign earnings that are not brought back to this cou country try The tax deferral on such income is important to many companies in the offshore industry and with foreign operations operations operations op op- expected to continue growing at a rapid clip removal of this tax advantage would have a substantial impact impact im pact on both current and future results Another consideration is the Investment investment invest Invest- ment tax credit In an effort to slow the economy to a more sustainable rate of growth it is possible the Administration tion may reduce that credit Since the offshore industry is spending a considerable considerable consid erable crable sum on expanding its equipment any reduction in the investment tax cre cre- credit credit credit dit would have an impact on reported ear earnings for many companies involved As a matter of fact this large expansion expansion ex ex- ex- ex program in itself has raised the question of possible future overcapacity overcapacity over over- capacity when all the new new equipment comes on stream Hence wt while le the near near- term outlook indicates a high utilization ton tion rate there is some doubt about the term longer supply demand equation |