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

To: Crimson Ghost who wrote (46244)	6/10/1999 5:07:00 PM
From: CommanderCricket	Read Replies (1) \| Respond to of 95453

Perhaps I'm a little naive about capital spending, but for an oil company to stay an oil company, they must be continually replacing reserves (depletion). That doesn't necessarily mean they need to be looking for new reserves but they do need to keep current reserves from falling. This is done by in-field drilling, workovers, secondary and tertiary recovery, etc.. All this costs money and can't be posponed for long. MHO is that once everyone determines oil will stay above $16.00 bbl, the cap. spending will start flowing. Faster then anticipated because of pent up demand from putting off programs and field maintenance.