State of the Oil Industry

Wonderful article on the state of the oil industry. Key points in the article:

• Mark Pease, senior vice-president of exploration and production for Anadarko Petroleum Corp., believes "There really is a lot of potential and reserves to be found in North America. There's going to be a lot of increase in activity."

• "I've been in the industry for 23 years now, and I certainly believe that the industry fundamentals are the strongest I've seen in my career." mentioned Mark Urness, Merrill Lynch director of oil services and drilling research.

• "Our forecast shows drilling activity reaching the highest level in 20 years. And we expect sustained growth in 2005-06 as long as [global] economic growth remains strong." again noted by Urness.

• In the Gulf of Mexico, said Danny McNease, chairman and CEO of Rowan Cos. Inc., drilling rigs are in short supply, and a spate of lease expirations looms.

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