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There has been increased offshore oil exploration in the West Africa, North Sea, and Gulf of Mexico areas and this has provided strong results for those companies which offer offshore drilling equipment and services. Earnings have also increased for firms that provide advanced services and equipment, such as seismic surveys, completion tools, and drill bits. The stocks of these industries are timely in 1998, but investors need to consider safety.

Offshore oil exploration in West Africa, the North Sea, the Gulf of Mexico and the US has been increasing by companies that are faced with declines in oil and gas reserves. The demand for drilling equipment and services with the increased exploration has driven up the earnings for the oil field equipment and services industries as a result. These stocks are timely for 1998, but investors need to consider safety when making selections.

Exploration activity in many offshore areas has rapidly increased in the 1990s due to the decline in oil and gas reserves, and drilling technology has also advanced during the same period. Oil and gas exploration has also become more profitable with the combination of higher commodity prices and lower costs, and drilling services and equipment are more cost-efficient. Stocks in this industry are timely, but cyclical, for 1997 and 1998.

There has been increased offshore exploration activity by the petroleum industry, particularly in West Africa, the North Sea, and the US portion of the Gulf of Mexico, with greater oil and gas demand. Exploration costs have also been reduced through technological advances, and earnings gains have resulted for the petroleum services and oil field equipment industries. The stocks in this sector are timely in 1997, and have growth potential as well.

The petroleum services industry and oil field equipment and supplies industry had possibly the best stock price and earnings results of any industry in 1996 and, although Jan 1997 saw a downturn in these results, despite overall market increases, these equities will be leaders for 1997. Recent trends in consolidation, energy consumption, economic growth and technologies will please both short and long-term investors. Individual Safety rankings should be examined before investing in specific companies.

The petroleum services industry and the oilfield equipment and supplies industry stocks have the highest timeliness rating of any industry, have shown record growth and profits over the last ten months, are seeing a rebirth of offshore oil and gas drilling and a jump in stock prices that make many companies' securities a prized investment. Mergers, acquisitions and consolidations during the past years' along with carefully planned price slashing, have given these industry stocks the good results that investors seek.

The number of offshore drilling rigs has decreased to about 575 in 1996 due to lower daily rental rates. Increased drilling activity for petroleum and natural gas in 1996, however, is giving suppliers and offshore drillers greater earnings prospects for the next three to five years. Coiled tubing and 3D seismic are among technologies that are becoming important, also. Investors for the long term will find several good stocks here.