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

To: Tomas who wrote (59843)	2/5/2000 1:14:00 PM
From: Think4Yourself	Respond to of 95453

Mr. Rubin makes some REALLY good points. OPEC was very concerned last year that non-OPEC supply might fill the gap. It hasn't happened, and isn't about to happen anytime in the near future. Most of the current drilling is for NG, not oil. I think they are "waffling" now because budgets are being finalized. Once they see how much is being spent by non-OPEC suppliers they will have a good idea as to whether or not to continue the cuts. The non-OPEC producers have NOT been able to fill the gap left by the OPEC cuts so far, indicating there IS NO EXCESS SUPPLY OUTSIDE OF OPEC. My research also indicates that many of the larger producers are currently experiencing DECLINES in production due to minimal spending last year. Major producers have been concentrating on mergers and cost-cutting. These declines will take time to reverse, and I am not sure if some of the budgets will even ARREST the production declines at certain companies. Then there is this "inflation" effect put out by the industry morons. They all conveniently ignore the common knowledge that if you adjust oil for inflation (like everything else is) then their argument is exactly wrong (like all of their other prognostications). Oil now is 40% cheaper than it was during the embargo when adjusted for inflation. They also ignore that the manufacturing processes and products produced are much more efficient than they were during the embargo. Take the manufacturing of steel as one example. The plants of today use MUCH MUCH less energy to create a ton of steel now than they did 30 years ago. The ones that couldn't become more efficient are rusting away all over the country. Take the Amtrak west from Pittsburgh and you'll see what I mean. Motors are another example. The motors being manufactured today are much more powerful that use the same energy as motor made 30 years ago (when both are new). Cars and trucks also, but there are many more trucks on the road than 30 years ago. Bottom line is that OPEC can damn well continue the cuts if they want, laughing at all the moronic "industry experts" (CNBC puts on the air) as they truck their profits to their coffers. My only question is whether the memories of recent fear is stronger than greed with the weaker cartel members. Greed will break OPEC, not stupid comments made by "experts" and politicians.

To: Tomas who wrote (59843)	2/5/2000 2:42:00 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

cold weather and 95 NEW NG turbines. Don'cha just hate them EnP's? ;o) Gee, I wonder what the market will think of THIS combination of events come Monday?? quote.bloomberg.com 2/4 19:10 Natural gas for March delivery (NGH0 ) could rise after the National Weather Service forecast more frigid weather for the U.S. Northeast and Midwest, the fuel's biggest home heating markets. Below normal temperatures are expected in the Northeast and Great Lakes regions from Feb. 10 through Feb. 14, with seasonably cold weather in the rest of the Midwest. March natural gas rose 8.3 cents to $2.742 per million British thermal units on the New York Mercantile Exchange. quote.bloomberg.com 2/4 16:15 Schenectady, New York, Feb. 4 (Bloomberg) -- General Electric Co., the No. 1 maker of power turbines, said it won a $500 million contract to supply 16 turbines to Northern States Power Co.'s NRG Energy unit. GE will provide Northern States with 11 natural gas and 5 steam turbines, which have a capacity to generate 3,000 megawatts of electricity, enough power to light 3 million homes. The turbines will be installed on Northern States' existing power plants in North America during the next five years. The contract comes two days after GE's Power Systems division announced a $4 billion contract to supply turbines to North Carolina-based Duke Energy Corp., one of the largest orders it's ever received. ... In case anyone's wondering about that $4 Billion... biz.yahoo.com The agreements cover the purchase of 84 gas turbines, 17 steam turbines and long-term services agreements for up to 23 merchant power plants across the country.