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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: rocklobster who wrote (23024)5/29/1998 8:19:00 AM
From: marc chatman  Read Replies (1) of 95453
 
<<Add to that the fact that technology has made it vastly cheaper and easier to get oil out of the ground>>

Absolutely. But this would mean that oil production becomes more profitable at lower prices, which in turn means that producers will continue to drill.

As for the internet creating a paradigm shift in demand for oil products, perhaps, but I doubt it. Look at some other revolutionary tools of communication -- telephones, faxes. Did these create a decrease in the demand for gasoline? What about the television, vcr's and pay-per-view -- we don't have to leave our homes for entertainment. Did that create a decrease in demand for gas? Is the internet so different?

I wouldn't be surprised to see oil prices remain at low levels, but I think that will be more a supply side issue. There are many new players now trying to suck oil out of the ground, and it's the new technology which makes that possible.
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