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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: SliderOnTheBlack who wrote (92314)7/15/2001 4:49:07 PM
From: patron_anejo_por_favor  Read Replies (1) of 95453
 
<<The smartest thing OPEC could do here & now; is to take Oil down sharply to $15-$18. That would nip in the bud, the LT Cap Ex commitments from the Majors & non-OPEC producers>>

Exactly. It's apparent that price volatility favors OPEC. By crushing prices every 2-3 years, they basically check non-OPEC cap-ex ramps and destabilize oil patch employment bases (ie, patch workers get fed up and retrain in other job opps). Therefore when the next boom comes, the domestic industry isn't nimble enough to fully exploit it. This sort of volatility also slows development of alternative energy resources. It's a win-win-win proposition for OPEC, despite their statements about wanting price stability. The U.S wants price stability NOT OPEC. Therefore oil will remain the most cyclical of commodities for the forseeable future, IMO.
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