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

To: Aggie who wrote (51664)	9/23/1999 12:37:00 AM
From: Tomas	Respond to of 95453

OIL: Opec hints cuts may be extended - Financial Times, Thursday By Robert Corzine in Vienna The Organisation of Petroleum Exporting Countries yesterday hinted that the present round of production cuts, which has helped cause crude oil prices to more than double this year, could be extended beyond their formal expiry in March 2000. In a communiqu‚ issued at the cartel's headquarters in the Austrian capital, Opec oil ministers said the production restraint agreement will remain in place "until at least the end of March 2000". Analysts and oil company executives in Vienna said the careful wording of the statement left open the possibility of keeping the regime beyond that date. Ministers appear to have at least partly acknowledged the concerns of some member states, such as Kuwait, which fear the consequences of increasing output in the second quarter, when world oil demand is usually at the low point in its annual cycle. Opec ministers welcomed the big recovery in oil prices this year, brought about in large part by widespread adherence within the group to a series of production cuts aimed at arresting the sharp decline in prices in 1998 and in the early part of this year. But there was disquiet in some quarters that the present price level of around $22-$23 a barrel for front-month Brent oil futures may prove unsustainable, given the uncertain level of world demand and a perception, both within Opec and among many of the western world's main oil companies, that global stocks of crude oil remain relatively high. Youcef Yousfi, Algeria's oil minister and the current Opec president, said: "The market situation still seems to be fragile, contrary to what present price levels might indicate." Ali Rodriguez, Venezuela's oil minister, expressed concern that current prices might even project "a false image" of market conditions. He said the true picture should be clear by March. As expected, most ministers sidestepped the question of what they might do if oil prices turn sharply higher in the fourth quarter of this year, when some industry observers fear there could be a rapid diminution of stocks in response to the onset of winter in the north. Rilwanu Lukman, Opec's outgoing secretary-general, said he did not see "any danger of a price spike". But it is clear that at least some Opec countries are already considering their bargaining position should the group agree that market conditions require them to raise output. Last night ministers resumed debate on who should replace Mr Lukman as Opec secretary-general. Although the post is mainly ceremonial with no executive powers, three of Opec's biggest producers - Saudi Arabia, Iran and Iraq - put forward candidates in what threatened to become a bitter battle over prestige within the cartel. After a protracted debate none of the candidates was able to muster the consensus Opec rules require, and Mr Lukman was asked to stay in his post until the group's next meeting in March. The fact that Saudi Arabia, the dominant force within Opec, was unable to push through its candidate surprised some observers. The Saudi candidature had been seen by some analysts as confirmation that Riyadh - which in recent years has been frustrated by Opec's performance - was willing to make a clear commitment to the group as its principal oil policy platform.

To: Aggie who wrote (51664)	9/23/1999 12:45:00 AM
From: GaAs52	Read Replies (2) \| Respond to of 95453

Oil and gas Rig Count Some numbers from BH rig count Date----------Tot. Rig------Gas Rig----- Oil Rig 01/26/96-----703----------404--------- 291 09/05/97-----1032---------625--------- 404 04/23/99-----488----------362--------- 126 08/06/99-----616----------516--------- 98 09/17/99-----703----------570--------- 132 The numbers tell most of the recent increase in rig count is for gas. The number of rigs for gas is almost close to the 97 top numbers whereas the number of rigs for oil is not far from the recent bottom. The current number of rigs for oil is even less than half of pre-boom numbers when the total number of rigs is the same as the current total. Is this why generous NG supply is expected hence softer NG prices? The rig numbers for oil does reflect an oil price of less than $15. Should we expect a jump on drilling activity to reflect the current price of oil? Wrong or right? Please comment.