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

To: Gottfried who wrote (51849)	9/24/1999 7:26:00 PM
From: dfloydr	Read Replies (1) \| Respond to of 95453

Thanks for doing the homework for us on oil vs. gas rig activity. Not too surprising to see so many gas rigs at work. You probably know most of the following reasons: For gas: 1. We can not import gas practically except from Canada. 2. Gas is a low pollution fuel and power companies are switching heavy money into gas plants. 3. The productivity curve for many gas wells drops off rather quickly and with few wells having been drilled over the past year someone better start getting some new wells started just to meet normal US demands. 4. There are supposedly quite large areas of reasonably promising on shore gas prospects. Some, such as the methane bed gas wells in Wyoming/Colorado, require you to drill a lot of small shallow wells to come up with enough gas to make a good business. Against oil: 1. You know that OPEC could turn on the spigot and add around 7mm bbl/day to supply without breaking a sweat. And we know what happened to price when they last tried that trick. Makes the outlook for your oil drilling dollars a little less certain. 2. None of the guru's on this thread are pointing to any large onshore oil prospects.