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

To: SliderOnTheBlack who wrote (50284)	9/2/1999 10:13:00 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

Your statements about NG prices were interesting. I was thinking about the prices all yesterday evening (yes, my life is sad) and came to the same conclusion as your friend. The traders and utilities are being VERY vocal about not needing more gas, stocks are adequate, etc. On the other hand, rig counts, E&P spending (Especially Doug VanFant's story of his management), and indepth studies all suggest supplies are very tight and shortages are likely. I tend to believe the story backed by cash expenditures.

To: SliderOnTheBlack who wrote (50284)	9/2/1999 11:08:00 AM
From: Fun-da-Mental#1	Respond to of 95453

Canadian rig counts: canoe.ca The Canadian scene is all land drilling except for Hibernia, so this is probably pretty representative of the US land driller situation. Canadian rig counts are considerably up from a year ago, and so presumably are driller earnings. I think this shows that current share prices for land drillers are fully justified on the basis of current earnings and reasonable expectations for next quarter. Maybe the prices for offshore drillers are more speculative, but land drillers are on solid ground (so to speak). I think this also shows that the time delay factor between oil/gas price changes and exploration spending is over-rated, for land drillers anyway. This year is already better than last. This may also have something to do with gas vs. oil production, since (as far as I know) land drilling is more weighted towards gas, and the gas price has been more stable. Fun-da-Mental

To: SliderOnTheBlack who wrote (50284)	9/2/1999 11:28:00 AM
From: Douglas V. Fant	Respond to of 95453

Slider, Two notes- I see heavy institutional buying of major energy stocks today- taking advantage of the dip. Also yesterday I received a call from a major OS firm. They had given us some price discounts earlier in the year on certain services,goods. Well now they want "price relief" on these discounts from us. Just a single phone call, but again like a coconut floating in the water or a land-based bird flying over your ship, a sign that business conditions are now improving for OS firms....