Show BUSINESS t r rt ind thi ml SIU f AND H I IA J A sector of importance to the oil industry as a whole is that group of companies engaged in supplying oil field services and l' l equipment nt of every description to onshore and offshore oil and gas operators rs Activities of these firms encompass contract drilling plat platforms forms drill rigs of ot all sizes anti and in some Instances shares in oil and gas production production ton tion tion Not all companies provide all services but roughly break breakdown breakdown breakdown down into drillers and tool manufacturers Domestic frilling Drilling While repeal of the oil depletion depIction allowance had been expected to reduce capital outlays dome domestic tlc drilling remains generally brisk and tool makers report healthy sales and revenues with good prospects for 1976 A recent estimate of drill rig usage projects an average of 1720 rigs in operation for next year an advance of about 90 from the 1975 1915 average These rigs will drill about million feet of hole in the U S. S some 65 p percent more than this year So in spite of protestations by bythe bythe bythe the oil companies it it would seem that domestic drilling will continue active in the foreseeable future Offshore domestic drilling should also be lively with any deregulation of natural gas gas' prices giving drilling activity an extra fillip While leasing on the continental shelves has suffered delays it appears inevitable and will provide additional business for the companies supplying field services and equipment International Among the Free World nations abroad the picture is also one of increased drilling activity with an estimated 1110 rigs scheduled for 55 million feet of hole The top lop spot will probably continue to be the North Sea although there are indications of a a. a surplus in the he large la sem submersible e. e rigs figs used In fn Vh those t those ose violent waters This will mea mean mean l idle dle drill rigs with their continuing continuing con con- fixed charges eroding profits for some operators But development nt of oil and gas product production on from discoveries alre already dy made will benefit many of the equipment companies Actual production of oil is underway in the Norwegian Norwegian Nor Nor- North Sea Field and in the British North Sea Forties Field L The fields are now landing crude oil in Scotland and Britain by undersea undersea un un- un pipelines These lines themselves constitute a major engineering feat with inch 36 diameter pipes running for hundreds of miles in considerable considerable con con- water depths Offshore Structures In addit addition ion to construction of the massive up to tons submersible semi drilling platforms there has been a booming business around the North Sea in the building of even larger permanent production platforms Many of these are fabricated out of concrete and steel and with their drilling equipment in place they stand taller than Ihan a story 50 building Beryl west of the Shetland Islands has received such a platform designed d to withstand waves up feet feel in height and tons of water pressure T T TI w o I f Good Cu d a t es esOn On a speculative basis the Research 1 Department of Babson's Babson Reports is currently recommending purchase of the stocks Mocks of two companies s in oilfield oilfield oil oil- field equipment and services les The first is Ht Reading Heading ading and Bates Bales Offshore which owns l 19 1 offshore offshore off off- shore drill rigs nine onshore rigs and is a contract driller and pipeline layer laer The Thu second is Santa Fe International In In- a u major drilling operations with wilh its marine marim rigs rags hooked booked through 1976 It R owns a 20 l percent interest in North Seas Sea's Thistle Field I and is a major builder of If platforms and marine oil Iii facilities II Its strength In land hand drilling rigs rig will bu tt 1 helpful since there may maybe be ix I tr nver over capacity ity pf of marine marinc rigs Headers interested Q in these two 1111 companies h ln lS l'S tray may get gel lice copies copil'S of more Inane d del III 1 tiled ailed reports by hy l writing u tl to Ral Reports lilt Inc II I Hills Ills J Muss Mass ii |