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Gold/Mining/Energy : coastal caribbean (cco@) -- Ignore unavailable to you. Want to Upgrade?

To: SnakeInATuxedo who wrote (1206)	12/28/1999 2:52:00 PM
From: Tom Frederick	Read Replies (1) \| Respond to of 4686

Mr. Perkins, I just came back from Italy. In Florence, the preferred method of transportation is the scooter or moped. Not out of preference, but because of pollution, congestion, and the cost of fuel. In a city like Florence you can get away with a scooter for quick trips around town like that. But we already went through that craze here in the sprawling suburban U.S. and as we all know, it didn't even stick in the cities let alone the burbs. We're back to SUV's at 9 mpg. When the cost is not an issue, Americans like size and power. When forced, we turn down the heat and buy smaller cars. (I am very interested to see how the gas/electric Honda @ 61mpg does over the next year) Like you said, when gas hits $3 a gallon motivations will change. But just to be clear on my position, I am in full agreement that environmental issues need to be addressed. We are the stewards of the planet just like our own bodies. It's up to us to take care of it. But that does not preclude development of natural resources in a responsible way. And this reserve could offer the U.S. a significant edge in remaining to some degree independent of a Middle East crisis in oil production and also act as a modifier on oil prices. Let's say the U.S. govt. says to CCO, go ahead and get an accurate estimate of the size, get an initial well tapped and then let's talk. Then the Fed gives CCO a nice big check to just sit on it and a payment for each year it sits idle. But at the negotiating table with the Middle Eastern suppliers, the word is, "yes, but we have a valve ready to turn on a couple billion barrels if we need to, so again, what was the price going to be per barrel?" Oil is an integral part of our economy and that won't change until everyone sees the last barrels pumped out of the ground. Until then, responsible development of reserves must be continued. However, I hope that CCO can get a final settlement or the OK to drill long before we hit $3 a barrel! Tom F.