These are difficult times in the oil and gas industry. With the changes currently taking place in daily operations, drilling contractors and service companies have to remain flexible enough to adapt and survive.

The period from 1980-1982 saw the industry become cost inefficient. No one segment of the industry could be blamed for the inefficiency. All were strapped with more work than they could do and were burdened by a shortage of qualified people.

Now with the shakeout slowing, the industry can regroup and reevaluate what has been learned during the recent period of unprecedented growth and activity.

With the tight money situation, operators will be most concerned about drilling good prospects and keeping costs reasonable. The drilling contractor's and service companies' prime goal will be to survive. Their emphasis will be put on increasing rates and hoping for a quick return to profitability or at least a positive cash flow.

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