SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ilaine who wrote (64664)2/5/2001 11:54:39 AM
From: Archie Meeties   of 436258
 
There's a running argument on the SD board as to whether or not the e&p's have peaked. The bear case is that a;the commodity has peaked b;industrial demand for ng is retreating rapidly c; q to q comparisons will be negative in 2001. The bull side is a; the stocks are pricing in $4 ng b; industrial demand can go to zero and there still will be a supply problem in winter 01-02 c; q to q comparisons will not be negative in 2001 b/c the avg ng price will be higher than 2000. A look at the XNG shows that the market, like the board, is in a state of indecision.

The March-April period is traditionally strong for this sector. An early move would be bullish, as those waiting for the traditional period get left behind and scramble to catch up, whereas more grinding throughout the Spring would be decidedly bearish. I favor the former, although I'm only about 20% energy at the moment and mostly the service co's. The e&p's will be taking the drilling costs up the *ss soon, especially those drilling on land in the US.

The Bush folk will be bend over backwards friendly to the energy industry - the traditional industry, not the alternative one. I suspect we'll see tax cuts, expansion of drilling lands, and most importantly, no market intervention. They've already demonstrated a reluctance to intervene in electricity prices. All, of course, in the name of free markets. I think the quote was something like 'We don't wish to intervene because there is a supply problem and if we intervene we might lessen the demand for new electricity generation.' Or some such obfuscation.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News