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

To: Fun-da-Mental#1 who wrote (47881)	7/13/1999 2:16:00 PM
From: ChanceIs	Respond to of 95453

Fun-da-mental - Off the cuff I agree with you $10/barrel appears to be much higher than "production" (lifting) costs. However I would refer you to the now famous "Simmons Article" which suggested that when you crank in all the exploration/seismic, drilling, and infrastructure (pipeline, salt water disposal, etc.), the actual price will be around $15. This is where the lawyers will have fun. I believe that in Texas, all the water that comes up a hole has to be put back down some adjacent hole, an expensive but environmentally responsible process. Do Mexico, Venezuela, and SA have to do that??? (I'm sure that isn't a concern in Iraq.) This should prove to be a great opportunity to learn about the global oil industry. (Is Saddam going to come over here to defend himself? VBG)