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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: John Pitera who wrote (98209)4/26/2001 5:32:36 PM
From: Archie Meeties  Read Replies (1) of 436258
 
I like APC on your list. It has a backdoor play into the Cali ng problem by virtue of some pipelines it picked up with UPR plus it recently picked up T.BKP and with it big exploration upside in Cali. Cali ng prices always trade at a premium to HH, the interesting thing is that they're trading at >100% premium these days, which will continue just as long as it takes to solve Cali's energy problems (2 years?). Feeding off of Cali's chronic electricity problem by selling ng into the state is as close as you can get to printing money in the e&p biz.

A big legislative boost for the sector will come with the Cheney/Bush proposals to reduce royalty tax of federal lands, open up exploration (Rockies, Easter GOM), FPSO in the GOM, etc... In short, improving the margins of e&p's through reduced costs and opening cheaper areas to explore. Good for the producers, but better yet for the oil services co's.

I'm neutral about the gold miners, but I like bullion anywhere below 260. Have some core holdings and have been adding SIL and T.BAY in the past month. I don't yet have a handle as to whether the next rate cut will seriously hurt the buck - but I wonder if that is what the XAU is trying to anticipate. If gold stays range bound, the XAU is coming back to earth.
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