Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: kormac who wrote (59321)	1/28/2000 9:06:00 AM
From: ChanceIs	Read Replies (2) of 95453

Al Gore Vs Matt Simmons Al Gore spoke on high oil prices: "Now with all of the new sources of oil in the world as a result of recent discoveries, I think it will be less likely that they are going to be able to maintain this for very long," Gore said when asked about high oil prices caused by the Organization of Petroleum Exporting Countries' policy of cutting oil production. canoe.ca Matt Simmons said in Calgary: In the meantime, watch what happens to non-OPEC oil supply this year as it will be one of the most important factors influencing the long term trend of oil prices. For the past three years, non-OPEC supply has essentially flattened out, just like the daily gas supply has done in the U.S. But, this non-OPEC supply flatness has received little notice. Most observers think high oil prices will automatically induce a flood of non-OPEC supply. If this flood is not forthcoming in 2000, then we might be witnessing the final peaking of worldwide non-OPEC supply. The reason this might be happening is not because we have suddenly run out of oil. It is merely a reflection of the rapidly increasing decline rates of so many oil fields. This is the end game of technology enabling small fields to be exploited and the lack of many new giant fields simmonsco-intl.com I guess Al Gore is just one of "most observers." Its good to know that potential world leaders stay so well informed. In a spate of new postings on his site, Simmons addresses the information problem and the horrible instability in oil prices, and quips that 1920's equities were more sound investments. Gore's statement only exacerbates the problem, creating the impression that there is an infinite supply. To be fair, George "W" has not acquited himself well recently either, saying that prices should be jawboned lower. The bottom line is that it takes some $22 to produce a barrel of oil. If the market won't pay it, then there will be no more oil.

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