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Gold/Mining/Energy : Oil & Gas Price Economics -- Ignore unavailable to you. Want to Upgrade?

To: Rod Copeland who wrote (194)	2/21/2000 3:08:00 PM
From: Archie Meeties	Read Replies (1) \| Respond to of 350

They have threatened strike now for months. If the Venz. government allowed them to strike it would strengthen the case for relaxing quotas in March. A government facilitated strike stands in contradiction to public reports that they wish oil to be lower. (I didn't really buy the post-Richardson appeasement announcement). So a well timed strike is a means to $40 oil and production increases in March. Such increases would be, after a month of lost Venz. production, insufficient. Perhaps they would be larger than we expect now, but smaller than the supply needed to overcome the deficit of lost Venz. production. We'd know that number - and they'd be well short of it. The interesting question is how much production they will salvage if they proceed with a contrived strike. Maybe it's time somebody keyed Venz. in on the reason for artificially low oil prices - I think Kuwait knows - it's gold said it did.

To: Rod Copeland who wrote (194)	3/27/2000 6:47:00 AM
From: Ed Ajootian	Respond to of 350

Rod, Great to see that OPEC looks like its gonna raise production by 1.5 mmbod. I really mean that! It is in everyone's interest --- OPEC, O&G Investors, HEC, even ROCO Petroleum --- to have stable oil prices. As we've found out, when oil gets priced too high it provides an opportunity for the high-cost producers to go at it --- which in turn brings on too much supply. Wondering if you hung in there with Panaco. I believe all the bad news is now out and that one is primed to take off at this point. They have about 40% oil production, all un-hedged.