Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Douglas Becker – Banc of America Securities.
Douglas Becker - Banc of America Securities
Gene, I just want to get a little more color on that 40 rig decline you were talking about for Nabors.
Eugene Isenberg
I don’t know if it’ll be. I’m just telling you that a number of people are suggesting and the price of gas suggest that, I guess, that the rig counts particularly gas in North America won’t be as robust as we previously projected or even as robust as what we are doing now.
So we’re prepared for the possibility of our share of the drop to be no more than 40 or 50 rigs. And that’s a probability, that’s not a certainty. That implies an industry drop of say 300 rigs, or 300 plus rigs. I’m saying that we’re prepared to cope with that because we think that might happen. Our E&P guy doesn’t think it is going to happen.
Douglas Becker – Banc of America Securities
Fair enough, but as we sit here today it doesn’t sound like you’re seeing any of even your legacy rigs being laid down.
Eugene Isenberg
Well we laid down a significant number of legacy rigs already. Joe is checking -- a couple dozen-ish. How many are you thinking, 18 now out of the marketing category. Eighteen?
Joe Hudson
It’s either 16 or 17.
Eugene Isenberg
Okay we have 16 or 17 rigs that are inventoried as marketed rigs that we are going to take out of the marketing category. We will continue to cannibalize them and scrap them. There are cases, there are a few cases so far where a good customer has come to us and said your competitor is doing this or that or the other thing. We’re never the bad guy. We’re always the good guy. You know there have been price adjustments that have been, so far, very modestly downward and so far a very few cases. But, you know, it’s silly to think that isn’t a significant possibility. No certainty, I just picked a number to say that I think won’t be worse than that, but it could be worse and it could be not as bad.
Douglas Becker – Banc of America Securities
That’s helpful. On the new builds, are the majority going to the U.S. or International of this latest round that you announced?
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