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

To: marc chatman who wrote (48185)	7/20/1999 10:11:00 AM
From: Captain James T. Kirk	Read Replies (1) \| Respond to of 95453

Jul 20--NYMEX energy futures are seen lower ahead of the expiration of Aug crude futures contracts today and the release of American Petroleum Institute data, which are expected to show a rise in crude stockpiles last week. Trade is expected to be choppy and rangebound with expiring Aug crude testing support at $20.15 and later at $20.00. * * * NYMEX Aug crude ended the overnight Access session down 18c at $20.26. Aug heating oil ended down 36 points at 51.00c, while Aug gasoline ended down 54 points at 61.25c. "It's going to open up lower in profit-taking with Aug crude going off the board today," a broker said. "It's definitely going to be a choppy day similar to yesterday." The spread between the expiring contract and Sep crude is expected to widen today as participants roll over their positions in the final session of the Aug contract. "We're buying Sep contracts and selling Auggie," a broker said. "You're going to see the spread blow out maybe about 30 cents." The market is also focusing on the release of API data with expectations for crude stockpiles to have risen 1.5-2.5 million barrels last week, according to most brokers and analysts. The market will likely come u nder pressure if this expectation is confirmed. But inventories of gasoline are anticipated to have dropped 1.0-2.0 million barrels last week, while distillates--which include heating oil and diesel fuel--are expected to have risen 1.0-2.0 million barrels. Refinery runs are expected to have risen 0.2-0.5% points. (Story .1885) Meanwhile, Valero confirmed it shut Sunday its 52,000-barrel-per-day fluid catalytic cracking unit at its 160,000-bpd Texas City, Texas, refinery because of a mechanical problem. Repairs are seen completed in 5-7 days. The FCC unit was running at full capacity before the shutdown. (Story .20196) Also, tensions heighten in Iraq as Baghdad today angrily dismissed the US argument that its air strikes were in self-defense, after officials said 17 civilians died in the south of the country, many of them burnt to death in their cars. The US "continues to term its aggressions against Iraq as acts of self-defense, but honest commentators are disgusted by such words which are nothing more than an insult," said Al-Qadissiya, an official daily. (Story .12773) UPCOMING: --Aug crude futures expire today. Sep crude options expire Aug 17. --Aug product options expire Jul 27, while Aug products expire Jul 30. --API data are expected after 1600 ET Tuesday, while the US Department of Energy data are expected after 0900 ET Wednesday.

To: marc chatman who wrote (48185)	7/20/1999 11:39:00 AM
From: upanddown	Read Replies (1) \| Respond to of 95453

Did anyone read the article by Mavis in TSC yesterday ? The basic premise was that Unocal has had poor results to date in its deepwater GOM program. The thing that interested me was the opening paragraph. Unocal (UCL:NYSE) likes to tout its souped-up drilling technology, which pierces the earth 47% faster than comparable wells. There's just one problem: The wells it's drilled with this fancy technology in the Gulf of Mexico's deep waters have been duds. Unocal has invented an improved drilling technology? That doesn't make sense. They were using a RIG semi. Does RIG have faster drilling technology? Seems to me that deepwater rigs that can drill "47%" faster would have a distinct marketing advantage, given the majors whining about deepwater dayrates. Anyone have knowledge of deepwater drilling technology and who is involved ? TIA, John