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

To: Wowzer who wrote (49188)	8/11/1999 11:20:00 AM
From: Timelord	Read Replies (2) \| Respond to of 95453

A few observations on O & G and the economy - Aren't we overlooking a fundamental problem here? My outlook for the future of the overall market is tempered by two things. First, the thing we most desire, which is higher O & G prices, will bring real inflationary pressure to bear on the economy. As has been frequently pointed out, our favorite commodities have a far reaching impact on all aspects of our economy. Which brings us to the second point - if OPEC couldn't stop a charging elephant on the way down, what makes everyone think they can control prices with pin-point accuracy on the way up? A small miscalculation, and we can easily find oil prices spiking through the OPEC "ideal". We know how long it takes for over/under supply to correct itself - months. What would $26 per barrel oil do to an over-inflated stock market? And most people here already expect NG prices to go higher. Just a few things to consider when we talk about "soft" landings and humming economies. I remember all too well how O & G was supposed to keep humming forever in September of 1997… All JMHO of course. Alex