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

To: BigBull who wrote (59845)	2/5/2000 7:28:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 95453

Here is why oil stocks ahve been weak despite booming crude prices. Make no mistake about it OSX investors -- THE US GOVERNMENT IS YOUR DEADLY ENEMY. 2111 GMT, 000204 ? U.S. Accelerates Efforts to Scuttle Oil Production Cut Agreement U.S. Secretary of Energy Bill Richardson said Feb. 2 during a visit to Norway that while the United States believes oil prices are currently too high, it will pressure neither Norway nor the Organization of Petroleum Exporting Countries (OPEC) to lower them. While in Oslo, Richardson met behind closed doors with Norwegian Oil Minister Marit Arnstad, who recently returned from Saudi Arabia where she vowed to stick to output cuts as agreed until March 31. Despite her pledge to maintain cuts, there are other signs that Norway may discontinue compliance with production cuts past March ? in effect, lower the price of oil. "We are concerned about high oil prices," Richardson said following his meeting with Arnstad. "We think that right now they are high. But the United States very strongly believes that market forces should dictate prices. We are not here to pressure OPEC or countries like Norway." On March 23, 1999 OPEC and non-OPEC producers, including Norway, agreed to cut more than 2.1 million barrels per day (bpd) from the world oil market. Norway?s share amounted to 200,000 bpd, which was 50 percent of all non-OPEC producers? cuts and a little below 10 percent of total cuts. However, the U.S. Energy Information Agency (EIA) reported an 80 percent compliance rate with these cuts in the second and third quarters of 1999 that fell to 74 percent in the fourth quarter. The North Sea production accounted for an estimated 80 percent of these gains. Still, with even partial compliance, oil prices have reached almost $26 a barrel, which can also be attributed to a reduction in world oil stocks and the normal high winter demand. The Norwegian Oil Ministry on Dec. 8, 1999 expressed satisfaction with the oil price recovery, but cautioned over the strength of the rebound. "Norwegian oil production will be reduced by 200,000 bpd in the first quarter of 2000," the ministry statement said, bringing Norway in line with its pledged cuts. But, the statement added, "This measure will be removed if other producers fail to implement announced cuts or if the development of the oil market takes other directions than expected." However, Arnstad?s statement may be an attempt to put off the inevitable. The 2000 Norwegian budget is already based upon an increase of 500,000 bpd. Richardson?s trip was undoubtedly designed to exploit this uncertainty. Norway?s need for a high price conflicts with the United States? need for affordable oil. The current rise in oil prices has stung U.S. consumers and industry. With elections around the corner, the Clinton administration has been under increased pressure to release oil from its 580 million barrel Strategic Petroleum Reserve to help bring down prices. But after weeks of remaining noncommittal, Richardson indicated that the United States would not enact that option. Conversely, high oil prices have aided Norway?s oil industry. Average production costs in Norway are relatively high compared with other regions. Weighted average operating costs in Norway were $4.80 per barrel in 1996 compared to $1 per barrel in Venezuela and Saudi Arabia. As well, oil exports account for roughly 55 percent of Norway?s total export revenues. Still, the country is in a better position than other oil producers to take a financial loss in the event of a decline in oil prices, because the government has established a financial safety net for such an occasion. In 2000 the government is expected to add about $9 billion to this petroleum fund, bringing the total to almost $38 billion. Still, it is unlikely that the Norwegian government would use these funds unless it was forced to do so. Even though most Norwegian oil is exported to Europe, by attempting to persuade Norway directly, the United States hopes to indirectly influence its own oil suppliers: Mexico, Venezuela and Saudi Arabia. Saudi Arabia, along with Iran and Russia among others, competes with Norway in supplying oil to the European market. If Norway were to add 200,000 bpd of extra oil in this market, it would increase the supply of oil in the European market, as well as lower prices. This would force Saudi Arabia, and in turn other suppliers to the United States, to lower their prices. Increased Norwegian production may simply set this process in motion. [Back to Homepage] info@stratfor.com ¸ 2000 WNI, Inc. All rights reserved.

To: BigBull who wrote (59845)	2/6/2000 5:29:00 AM
From: Gottfried	Respond to of 95453

Big Bull, found the day rate chart at Simmons... simmonsco-intl.com It's for jackups only and ends 12/99, but better than no chart. Gottfried

To: BigBull who wrote (59845)	2/6/2000 10:10:00 AM
From: SargeK	Respond to of 95453

Exploration Boom?? Posted on Yahoo: messages.yahoo.com Extract: We reiterate purchase recommendations for long-term investors on price weakness, as shown in the table below, and recommend short-term investors continue an opportunistic trading strategy. Ticker Price Price % 2/4/00 Target Gain Oil Producers Atlantic Richfield ARC 69.00 $84.00 22% Chevron CHV 79.00 $110.00 39% Occidental Petroleum OXY 19.50 $35.00 79% Texaco TX 51.00 $75.00 47% Energy Service BakerHughes BHI 22.38 $35.00 56% CooperCameron CAM 49.75 $75.00 51% Friede Goldman Halter FGH 6.00 $20.00 233% Halliburton HAL 36.63 $55.00 50% Marine Drilling MRL 19.50 $35.00 79% Nabors Industries NBR 30.75 $45.00 46% Rowan Companies RDC 22.75 $35.00 54% Schlumberger SLB 59.63 $75.00 26%