Question-and-Answer Session
Operator
(Operator Instructions) We will take our first question from Ken Sill with Credit Suisse. Please go ahead.
Ken Sill - Credit Suisse
Yeah. Good morning.
Ken White
Good morning.
Ken Sill - Credit Suisse
Still isn't it yes? Okay. On the outlook I guess so Q4 looks relatively flattish. Are you expecting or is your guidance incorporating any kind of typical seasonal slowness for the holidays and stuff or are you guys getting any indication how that's going to work out?
Jeff Tepera
Usually we only see that on our completion side, our work over side of the business, and we're contemplating that today. And, so in our guidance we are expecting these normal holiday times for Thanksgiving and Christmas primarily for our coil tubing and our wireline businesses.
Ken Sill - Credit Suisse
And I guess the key is you trying to look at next year. You've spent a lot of money growing your capacity, you're talking about Saudi Arabia adding next year. Could you talk about what you see growing as you move into '08 in terms of your business lines and in terms of capacity and are you seeing any kind of pricing pressure anywhere except for I guess coil tubing?
Jeff Tepera
Yes. I mean, I would say today let's exclude MLWD right now, but on the coil tubing we've seen some pricing pressure during this quarter. We've experienced rental tool pressure probably starting in the second quarter. We discussed that last quarter. Specifically on coil tubing, we saw pricing pressure primarily from our land areas, a little offshore but primarily land.
I would say that what you're seeing today, the capacity that's being added in coil tubing is more land based rather than offshore based, so I think, what we've seen in this quarter we'll see a little more of over the course of the next year again if we sit on this same type of rig count area, the 1700 because capacity in coil tubing has probably gone up 25 to 30% since January 1, of this year.
So, I think next year as long as if we're sitting, Ken, on anywhere between 1650 and 1750 rigs, you'll continue to see some pricing pressure in coil tubing and I think you'll start seeing some probably in the wireline area as well. Rental tools, I think, we've seen some and we'll continue to see a little bit again, if we can on the same base because you're seeing a lot of supply coming to the marketplace.
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