UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549


                                    FORM 10-Q


    / x /        Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                  For the quarterly period ended June 30, 1997

                                       or

    /   /       Transition Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934
                For the transition period from _______ to _______


                         Commission File No. 33-19659-02


                           PARKER & PARSLEY 88-B, L.P.
             (Exact name of Registrant as specified in its charter)

               Delaware                                    75-2240121
    (State or other jurisdiction of                     (I.R.S. Employer
    incorporation or organization)                   Identification Number)


303 West Wall, Suite 101, Midland, Texas                      79701
(Address of principal executive offices)                    (Zip code)


       Registrant's Telephone Number, including area code : (915) 683-4768

                                 Not applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.


                                Yes / x / No / /

                               Page 1 of 11 pages.
                            Exhibit index on page 10.


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                           PARKER & PARSLEY 88-B, L.P.

                                TABLE OF CONTENTS


                                                                          Page
                                                                          ----
                          Part I. Financial Information

Item 1.    Financial Statements

           Balance Sheets as of June 30, 1997 and
              December 31, 1996   ......................................    3

           Statements of Operations for the three and six
             months ended June 30, 1997 and 1996........................    4

           Statement of Partners' Capital for the six months
             ended June 30, 1997........................................    5

           Statements of Cash Flows for the six months ended
             June 30, 1997 and 1996.....................................    6

           Notes to Financial Statements................................    7

Item 2.    Management's Discussion and Analysis of Financial
             Condition and Results of Operations........................    7


                                       Part II. Other Information

Item 6.    Exhibits and Reports on Form 8-K.............................   10

           27.   Financial Data Schedule

           Signatures...................................................   11



                                        2

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                           PARKER & PARSLEY 88-B, L.P.
                        (A Delaware Limited Partnership)

                          Part I. Financial Information

Item 1.   Financial Statements
                                 BALANCE SHEETS
                                                     June 30,      December 31,
                                                       1997            1996
                                                    -----------    -----------
                                                    (Unaudited)
                 ASSETS

Current assets:
  Cash and cash equivalents, including interest
    bearings deposits of $158,650 at June 30
    and $106,356 at December 31                     $   159,050    $   106,856
  Accounts receivable - oil and gas sales               108,767        210,757
                                                     ----------     ----------
        Total current assets                            267,817        317,613
                                                     ----------     ----------
Oil and gas properties - at cost, based on the
  successful efforts accounting method                7,111,898      7,107,384
Accumulated depletion                                (4,670,161)    (4,576,529)
                                                     ----------     ----------
        Net oil and gas properties                    2,441,737      2,530,855
                                                     ----------     ----------
                                                    $ 2,709,554    $ 2,848,468
                                                     ==========     ==========
LIABILITIES AND PARTNERS' CAPITAL

Current liabilities:
  Accounts payable - affiliate                      $    29,068    $    22,500

Partners' capital:
  Managing general partner                               26,773         28,229
  Limited partners (8,954 interests)                  2,653,713      2,797,739
                                                     ----------     ----------
                                                      2,680,486      2,825,968
                                                     ----------     ----------
                                                    $ 2,709,554    $ 2,848,468
                                                     ==========     ==========



   The financial information included as of June 30, 1997 has been prepared by
          management without audit by independent public accountants.

              The accompanying notes are an integral part of these
                             financial statements.

                                        3

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                           PARKER & PARSLEY 88-B, L.P.
                        (A Delaware Limited Partnership)

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)



                                 Three months ended        Six months ended
                                      June 30,                  June 30,
                                ---------------------     ---------------------
                                  1997        1996          1997        1996
                                ---------   ---------     ---------   ---------
Revenues:
  Oil and gas                   $ 208,414   $ 251,186     $ 438,420   $ 482,932
  Interest                          2,475       1,960         4,538       3,572
                                 --------    --------      --------    --------
                                  210,889     253,146       442,958     486,504
                                 --------    --------      --------    --------
Costs and expenses:
  Oil and gas production          103,549      96,860       205,440     197,290
  General and administrative        6,154       7,536        13,253      14,488
  Depletion                        48,558      53,911        93,632     110,182
  Loss on abandoned property          -           951           -           951
  Abandoned property                  -           331           -           331
                                 --------    --------      --------    --------
                                  158,261     159,589       312,325     323,242
                                 --------    --------      --------    --------
Net income                      $  52,628   $  93,557     $ 130,633   $ 163,262
                                 ========    ========      ========    ========
Allocation of net income:
  Managing general partner      $     526   $     935     $   1,306   $   1,632
                                 ========    ========      ========    ========
  Limited partners              $  52,102   $  92,622     $ 129,327   $ 161,630
                                 ========    ========      ========    ========
Net income per limited
  partnership interest          $    5.82   $   10.34     $   14.44   $   18.05
                                 ========    ========      ========    ========
Distributions per limited
  partnership interest          $   13.82   $   13.80     $   30.53   $   25.41
                                 ========    ========      ========    ========


         The financial information included herein has been prepared by
          management without audit by independent public accountants.

              The accompanying notes are an integral part of these
                             financial statements.

                                        4

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                           PARKER & PARSLEY 88-B, L.P.
                        (A Delaware Limited Partnership)

                         STATEMENT OF PARTNERS' CAPITAL
                                   (Unaudited)




                                     Managing
                                     general       Limited
                                     partner       partners         Total
                                    ---------     ----------     ----------

Balance at January 1, 1997          $  28,229     $2,797,739     $2,825,968

    Distributions                      (2,762)      (273,353)      (276,115)

    Net income                          1,306        129,327        130,633
                                     --------      ---------      ---------

Balance at June 30, 1997            $  26,773     $2,653,713     $2,680,486
                                     ========      =========      =========





         The financial information included herein has been prepared by
          management without audit by independent public accountants.

              The accompanying notes are an integral part of these
                             financial statements.

                                        5

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                           PARKER & PARSLEY 88-B, L.P.
                        (A Delaware Limited Partnership)

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                          Six months ended
                                                              June 30,
                                                      ------------------------
                                                         1997          1996
                                                      ----------    ----------
Cash flows from operating activities:

   Net income                                         $  130,633    $  163,262
   Adjustments to reconcile net income to net
     cash provided by operating activities:
        Depletion                                         93,632       110,182
        Loss on abandoned property                           -             951
   Changes in assets and liabilities:
        (Increase) decrease in accounts receivable       101,990       (12,447)
        Increase (decrease) in accounts payable            6,568       (13,109)
                                                       ---------     ---------
          Net cash provided by operating activities      332,823       248,839
                                                       ---------     ---------
Cash flows from investing activities:

   Additions to oil and gas properties                    (4,514)       (2,071)
   Proceeds from equipment salvage on abandoned
     property                                                -              42
                                                       ---------     ---------
          Net cash used in investing activities           (4,514)       (2,029)
                                                       ---------     ---------
Cash flows from financing activities:

   Cash distributions to partners                       (276,115)     (229,819)
                                                       ---------     ---------
Net increase in cash and cash equivalents                 52,194        16,991
Cash and cash equivalents at beginning of period         106,856       126,330
                                                       ---------     ---------
Cash and cash equivalents at end of period            $  159,050    $  143,321
                                                       =========     =========

         The financial information included herein has been prepared by
          management without audit by independent public accountants.

              The accompanying notes are an integral part of these
                             financial statements.

                                        6

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                           PARKER & PARSLEY 88-B, L.P.
                        (A Delaware Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 1997
                                   (Unaudited)


Note 1.     Basis of presentation

In the opinion of  management,  the unaudited  financial  statements of Parker &
Parsley 88-B, L.P. (the "Partnership") as of June 30, 1997 and for the three and
six months  ended June 30, 1997 and 1996  include all  adjustments  and accruals
consisting only of normal recurring accrual  adjustments which are necessary for
a fair presentation of the results for the interim period. These interim results
are not necessarily indicative of results for a full year.

Certain  information  and  footnote  disclosure  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been  condensed  or  omitted  in this Form 10-Q  pursuant  to the rules and
regulations of the Securities and Exchange Commission.  The financial statements
should  be read in  conjunction  with the  financial  statements  and the  notes
thereto  contained in the  Partnership's  Report on Form 10-K for the year ended
December 31, 1996, as filed with the Securities and Exchange Commission,  a copy
of  which is available  upon request by writing to Rich Dealy,  Controller,  303
West Wall, Suite 101, Midland, Texas 79701.

Item 2.     Management's Discussion and Analysis of Financial Condition
              and Results of Operations (1)

Results of Operations

Six months ended June 30, 1997 compared with six months ended
  June 30, 1996

Revenues:

The  Partnership's  oil and gas revenues  decreased 9% to $438,420 from $482,932
for the six months  ended June 30, 1997 as compared to the six months ended June
30, 1996.  The decrease in revenues  resulted  from a 13% decrease in mcf of gas
produced  and sold,  an 11%  decrease in barrels of oil  produced and sold and a
lower average price received per barrel of oil, offset by a higher average price
received per mcf of gas. For the six months ended June 30, 1997,  16,275 barrels
of oil were sold  compared to 18,337 for the same period in 1996,  a decrease of
2,062  barrels.  For the six months ended June 30, 1997,  42,074 mcf of gas were
sold  compared to 48,232 for the same  period in 1996,  a decrease of 6,158 mcf.
The volume  decreases were primarily due to the decline  characteristics  of the
Partnership's  oil  and  gas  properties.   Because  of  these  characteristics,
management  expects a certain amount of decline in production to continue in the
future  until the  Partnership's  economically  recoverable  reserves  are fully
depleted.

                                        7

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The average price received per barrel of oil decreased  slightly from $20.27 for
the six months ended June 30, 1996 to $20.19 for the same period in 1997,  while
the average  price  received per mcf of gas  increased 13% from $2.31 during the
six months  ended June 30, 1996 to $2.61 in 1997.  The market  price for oil and
gas has been extremely  volatile in the past decade,  and  management  expects a
certain  amount  of  volatility  to  continue  in the  foreseeable  future.  The
Partnership  may  therefore  sell its future oil and gas  production  at average
prices lower or higher than that  received  during the six months ended June 30,
1997.

Costs and Expenses:

Total costs and expenses decreased to $312,325 for the six months ended June 30,
1997 as compared to $323,242 for the same period in 1996, a decrease of $10,917,
or  3%.  This   decrease  was  due  to  declines  in   depletion,   general  and
administrative  expenses  ("G&A"),  loss on  abandoned  property  and  abandoned
property costs, offset by an increase in production costs.

Production  costs  were  $205,440  for the six months  ended  June 30,  1997 and
$197,290 for the same period in 1996 resulting in a $8,150 increase,  or 4%. The
increase  was due to an  increase  in well  repair  and  maintenance  costs  and
workover expenses incurred in an effort to stimulate well production,  offset by
declines in ad valorem taxes and production taxes.

G&A's  components are independent  accounting and engineering  fees and managing
general  partner  personnel  and  operating  costs.   During  this  period,  G&A
decreased,  in aggregate, 9% from $14,488 for the six months ended June 30, 1996
to $13,253 for the same period in 1997.

Depletion  was  $93,632  for the six months  ended  June 30,  1997  compared  to
$110,182 for the same period in 1996.  This  represented a decrease in depletion
of $16,550,  or 15%,  primarily  attributable  to a decline in oil production of
2,062  barrels  for the six months  ended June 30,  1997 from the same period in
1996.

A loss on abandoned  property of $951 was recognized during the six months ended
June 30, 1996. This loss resulted from the  abandonment of a saltwater  disposal
well.  Abandoned  property  costs incurred on this well totaled $331 for the six
months ended June 30, 1996.

Three months ended June 30, 1997 compared with three months ended
  June 30, 1996

Revenues:

The Partnership's  oil and gas revenues  decreased 17% to $208,414 from $251,186
for the three  months  ended June 30, 1997 as compared to the three months ended
June 30,  1996.  The decrease in revenues  resulted  from lower  average  prices
received  per  barrel of oil and mcf of gas,  a 7%  decline  in  barrels  of oil

                                        8

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produced  and sold and a 5% decline  in mcf of gas  produced  and sold.  For the
three  months ended June 30, 1997,  8,342  barrels of oil were sold  compared to
8,942 for the same  period in 1996,  a decrease  of 600  barrels.  For the three
months ended June 30, 1997,  22,677 mcf of gas were sold  compared to 23,954 for
the same  period  in 1996,  a  decrease  of 1,277  mcf.  The  production  volume
decreases were due to the decline  characteristics  of the Partnership's oil and
gas properties.

The average  price  received per barrel of oil  decreased  $2.96,  or 14%,  from
$21.64 for the three months ended June 30, 1996 to $18.68 for the same period in
1997,  while the average  price  received per mcf decreased 4% from $2.41 during
the three months ended June 30, 1996 to $2.32 for the same period in 1997.

Costs and Expenses:

Total costs and  expenses  decreased to $158,261 for the three months ended June
30,  1997 as compared  to  $159,589  for the same period in 1996,  a decrease of
$1,328.  This decrease was due to declines in depletion,  G&A, loss on abandoned
property  and  abandoned  property  costs,  offset by an increase in  production
costs.

Production  costs were  $103,549  for the three  months  ended June 30, 1997 and
$96,860 for the same period in 1996 resulting in a $6,689  increase,  or 7%. The
increase  was due to an  increase  in well  repair  and  maintenance  costs  and
workover expenses incurred in an effort to stimulate well production,  offset by
declines in production taxes and ad valorem taxes.

G&A's  components are independent  accounting and engineering  fees and managing
general  partner  personnel  and  operating  costs.   During  this  period,  G&A
decreased,  in  aggregate,  18% from $7,536 for the three  months ended June 30,
1996 to $6,154 for the same period in 1997.

Depletion  was $48,558  for the three  months  ended June 30,  1997  compared to
$53,911 for the same period in 1996, a decrease of $5,353, or 10%, primarily due
to a decline in oil  production  of 600 barrels for the three  months ended June
30, 1997 from the same period in 1996.

A loss on  abandoned  property of $951 was  recognized  during the three  months
ended June 30, 1996.  This loss  resulted  from the  abandonment  of a saltwater
disposal well.  Abandoned  property costs incurred on this well totaled $331 for
the three months ended June 30, 1996.

Liquidity and Capital Resources

Net Cash Provided by Operating Activities

Net cash  provided by  operating  activities  increased  $83,984  during the six
months  ended  June 30,  1997 from the same  period  ended June 30,  1996.  This
increase was  primarily  due to an increase in oil and gas sales  receipts and a
decrease in production costs paid.

                                        9

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Net Cash Used in Investing Activities

The  Partnership's  principal  investing  activities during the six months ended
June 30,  1997 and 1996 were for  equipment  replacement  on various oil and gas
properties.

Net Cash Used in Financing Activities

Cash  was   sufficient  for  the  six  months  ended  June  30,  1997  to  cover
distributions to the partners of $276,115 of which $2,762 was distributed to the
managing  general  partner and  $273,353 to the limited  partners.  For the same
period ended  June 30,  1996,  cash was  sufficient  for  distributions  to  the
partners of $229,819 of which $2,298 was  distributed  to the  managing  general
partner and $227,521 to the limited partners.

It is expected  that future net cash  provided by operating  activities  will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.

---------------

(1)    "Item 2. Management's  Discussion and Analysis of Financial Condition and
       Results of Operations"  contains forward looking  statements that involve
       risks and uncertainties. Accordingly, no assurances can be given that the
       actual  events and  results  will not be  materially  different  than the
       anticipated results described in the forward looking statements.



                           Part II. Other Information

Item 6.     Exhibits and Reports on Form 8-K

(a)     Exhibits

        27.   Financial Data Schedule

(b)     Reports on Form 8-K - none


                                       10

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                           PARKER & PARSLEY 88-B, L.P.
                        (A Delaware Limited Partnership)



                               S I G N A T U R E S



       Pursuant to the requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                     PARKER & PARSLEY 88-B, L.P.

                                By:  Parker & Parsley Development L.P.,
                                       Managing General Partner
                                     By:  Parker & Parsley Petroleum USA, Inc.
                                           ("PPUSA"), General Partner




Dated:  August 7, 1997          By:  /s/ Rich Dealy
                                     --------------------------------
                                     Rich Dealy, Controller of PPUSA



                                       11

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