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

To: ItsAllCyclical who wrote (51860)	9/26/1999 9:04:00 PM
From: Gameboy	Respond to of 95453

JIML, sorry I overlooked your earlier post of the Phillips' plan to spend an extra $1 billion dollars next year on exploration & production. It does emphasize John Q. Public's point that an extra $1/barrel in oil revenues is not merely an extra $75 million dollars/day into the oil industry's pockets, because of the multiplier/trickle down effect the real impact if far greater than that because those pocketing the extra $75 million dollars/day more ($1,800,000/day in total @ $24/barrel) turn around and spend a lot of it on their favorite toys like oil rigs, pipelines, seismographs, boats, etc. It's amazing to me the 'world' is so far oblivious (or at least trying to ignore) the impact oil has already made. Inflation is up only .1%/month (when we ignore the .2% caused by energy increases - what a break!), the trade deficit hit an all-time high because of high oil imports but either domestic production will come like Jim Dandy to the rescue or we'll export enough copies of Microsoft Windows to take up the slack (another close one!). Nobody seems to care that the difference between 75 million barrels/day at $15/barrel and 75 million barrels/day at $25/barrel, is $750 million/day - real money, spot cash, dough-re-me. Of course, conventional wisdom is that oil companies are run by losers who'll never turn a REAL profit. This next year should send shock waves through Wall Street when it discovers the REAL earnings champs are good old fashioned oilers who will leave the techs and dot coms in their wake. Predictably, Wall Street won't take notice until the oilers 'show them the money' and it's coming like an avalanche. For those following the offshore rig count, the percentage utilization rate is now 72.7 compared to 68.8 a month ago - 4 1/2 months until we hit the tight 90% market and I'm still willing to bet the rate of increase accelerates. offshore-data.com For those second guessing that OPEC and their oil huckstering buddies, Big Oil, will open up the spigot when domestic producers ramp up production, guess again. They'll tighten production to keep their profits up. They're laughing all the way to the bank and every day that passes is a day sooner when they'll own ALL THE AVAILABLE RESERVES. Study the prices of the oil-related companies - next year, and five years from now, they'll seem like a fantasy. Hang loose and kick ass.