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To: Roebear who wrote (68689)	6/23/2000 2:05:00 PM
From: Tomas	Respond to of 95453

Opec delighted at no longer being the villain over oil prices - Financial Times, June 23 This week's meeting of the Organisation of Petroleum Exporting Countries was a way point on either a virtuous or vicious circle, depending on whether one's perspective is from an oil-producing or consuming country. For Opec, which agreed on Wednesday to a nominal 708,000 b/d rise in output, the meeting was an exercise in how not to rock an especially buoyant oil market boat, which this year is expected to deliver collective oil export revenues (excluding Iraq) of approximately Dollars 220bn. That is double Opec's revenues in 1998, when oil prices collapsed, and significantly above the Dollars 150bn-Dollars 160bn earned last year. For many consuming countries, concerned about the economic impact of high oil prices, Opec's decision offered little hope that crude oil prices - which have been above Dollars 30 a barrel recently - will soon be back at what are widely seen as more sustainable levels of Dollars 20-Dollars 25. Analysts say current Opec overproduction is probably running at around 600,000 b/d, so the real increase in Opec supplies could be as little as 100,000-200,000 b/d, too little to take much heat out of a global oil market of about 75m b/d. For the most important oil consuming country - the US - the meeting could mark the start of an especially rocky period in its relationship with its main Gulf Arab allies and oil suppliers. This week many Opec ministers, tired of being consistently cast as the villains when it comes to high oil prices, took obvious delight in shifting the blame for the latest surge in oil prices on to the US government and supply problems that have been associated with the introduction of new fuel standards in the US. "There is no shortage of crude oil," was the consistent and constant refrain from Opec ministers and officials, who also pointed to uncertainty about global oil demand in the second quarter as another reason to take a cautious approach to additional supplies. Even Saudi Arabia, the world's biggest oil exporter, the main US ally in the Gulf and generally the most moderate Opec state in terms of oil price policy, was decidedly cool about raising output, even though crude oil prices have recently been well above Opec's Dollars 22-Dollars 28 a barrel target range. But from a political perspective in Washington, Opec's caution may look more like complacency and a lost chance to cap the speculative pressures that keep pushing oil prices past the politically sensitive Dollars 30 a barrel level in spite of two Opec production increases this year. The surge in petrol prices in the US has taken on political overtones in a presidential election year, and the administration had been hoping Opec would moderate its cautious stance as one way to ease at least the psychological pressures underpinning world petroleum and refined product markets. But some analysts say it needs action by both Opec and the US government to solve the physical gasoline problem and to alter the mood of oil markets. "The only solution for consumers is for a temporary suspension of US environmental rules on reformulated gasoline and a 1m barrel a day increase by Opec," says Fallah Aljibury, a California-based energy analyst. But with neither element of that solution in sight, the outlook is for further uncertainty in the run-up to Opec's next meeting in September, when analysts say the stakes could be especially high given that it will be the last chance for the cartel to ensure adequate supplies for the fourth quarter, the period of greatest seasonal oil demand. "They could show up in September with Dollars 30 oil and knowing that there could be Dollars 40 oil later in the year with all the potential there is for supply disruptions," warns Roger Diwan, an analyst with Petroleum Finance Company of Washington.

To: Roebear who wrote (68689)	6/23/2000 2:16:00 PM
From: jim_p	Read Replies (1) \| Respond to of 95453

I'm not sure how I feel about this one? HOUSTON, June 23 /PRNewswire/ -- Seitel, Inc. (NYSE: SEI), announced today that the management incentive bonus compensation has been reduced to 8.5% of pre-tax income from 17.5%, a decrease in excess of 50%. In addition Herbert Pearlman, Chairman of the Board, and Paul Frame, President and Chief Executive Officer of Seitel, Inc., have elected to discontinue the automatic renewal feature of their employment contracts. Furthermore, David Lawi, Chairman of the Executive Committee and co-founder of Seitel, Inc. has resigned from the board of directors. This, in addition to the resignation of Horace Calvert announced June 7, 2000, reduces the size of the board to seven. Seitel, Inc. will take a one-time non-recurring pre-tax restructuring charge of $4.5 million ($3.9 million after-tax, or $0.16 per share) in the second quarter of 2000 relating to the buyout of management incentive bonus contracts. Mr. Pearlman's contractual bonus has been reduced to 3.5% of pre- tax profits in exchange for 150,000 shares of restricted Seitel stock and four annual payments of $187,500, net of taxes, beginning January 1, 2001. Mr. Frame has reduced his contractual bonus to 3.0% of pre-tax profits in exchange for 100,000 shares of restricted Seitel stock and four annual payments of $125,000, net of taxes, beginning January 1, 2001. Mr. Lawi's contractual bonus has been eliminated for 125,000 shares of restricted Seitel stock and $1.6 million, net of taxes, payable over four years. The withholding taxes on these payments will be 35%. Mr. Pearlman stated, "the sweeping changes to executive compensation and the board of directors were in response to shareholder comments. We believe today's announcements combined with improving industry fundamentals will have a material positive impact on the future earnings of Seitel and shareholder value. Our commitment to that belief is illustrated by taking stock in exchange for reducing the incentive bonus contracts." Mr. Frame stated, "our business model for growth demands that management deliver value to our shareholders by increasing revenue and profits. In addition, we believe management should have an equity interest in the decisions that form the company. We believe that restructuring executive compensation, coupled with an improved climate for geophysical and seismic services, will be reflected in our ability to once again deliver value to our shareholders." Statements in this release about the future outlook related to Seitel involve known and unknown risks and uncertain ties, which may cause the Company's actual results to differ materially from expected results. While the Company believes its forecasting assumptions are reason able, there are factors that are hard to predict and influenced by economic and other conditions that are beyond the Company's control. These risk factors are detailed in Seitel's filings with the Securities and Exchange Commission, including its most recent Form 10-K Annual Report, a copy of which may be obtained from the Company without charge. SOURCE Seitel, Inc. CONTACT: Russell J. Hoffman, Vice President Corporate Communications of Seitel, Inc., 203-629-0633