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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (46243)	6/10/1999 4:47:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 95453

Big oil cautions that cap spending will not surge anytime soon. But with OSX acting so well, I dream about what will happen when cap spending finally does take off. Thursday June 10, 4:15 pm Eastern Time Oil rally will not bring a spending spree-BP Amoco LONDON, June 10 (Reuters) - The recent oil price gains do not herald a return to oil industry costs and spending levels that existed before the price slump of 1998, a senior BP Amoco executive said on Thursday. The industry will continue to a keep tight rein on expenditure despite a rally in crude oil prices from 25 year lows touched in the first quarter, said Byron Grote, a BP Amoco executive vice president. ''We don't believe that the current crude oil price signals a return to pre-1998 industry costs structures and spending levels,'' he told an industry conference. ''We're convinced that a sharp focus on costs and capital efficiency will remain the name of the game,'' he added. He said that under volatile market conditions BP Amoco could plan its business with confidence only if it proceeded on the basis of the downside. ''For the upstream we asses that to be Brent prices at $11 per barrel,'' he said. That assessment did not mean that BP Amoco predicted the oil price staying at the low levels seen in the first quarter of 1999, Grote said. He said BP Amoco chief executive John Browne would give an annual presentation to investors in London on July 15, outlining the future strategy of the newly merged company. Grote said this presentation might last some three and a half hours. But Grote, in charge of BP Amoco's acquisition of U.S. firm Atlantic Richfield (NYSE:ARC - news), said he could not comment on that merger because it was under regulatory examination.