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: BigBull who wrote (80966)	12/7/2000 9:34:29 AM
From: kollmhn	Read Replies (1) of 95453

A recession induced reduction of oil demand is a real possibility. Yet, I am forced to wonder if OPEC has forgotten the lesson it learned less than two years ago. Namely, that if it is willing to forego less than 10% of its production, it can increase its revenues by 100%, or more. Now, if they have forgotten this simple equation, then I agree that we will be in for unpleasnant times in OSX and E&P land. However, if they have remembered it (and I think they have)then oil will be at $20-25 come recession, depression, or whatever. To me, that means the great fundamentals of this sector are here to stay until OPEC turns stupid.

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