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

To: kingfisher who wrote (233)	8/31/2000 7:06:21 AM
From: Ed Ajootian	Respond to of 350

R. Barbe, The article gives a fascinating insight into the oil price situation. Thanks! I'm happy that Bill C. is doing what comes naturally and it is resulting in keeping oil prices up. I believe another factor that is keeping prices up has to do with the politics of it all -- OPEC does not want to appear to be bowing to American wishes, so the more American politicians badger the OPEC countries to increase production, the more resolved they become not to do so. But the American politicians feel obliged to keep badgering the OPEC countries to increase production. It is for this reason that I'm not too concerned about the upcoming OPEC meeting. I believe OPEC will under-respond to the situation just like they did the last time, to show defiance against the Americans. So we O&G investors appear to be in good times for the foreseeable future!

To: kingfisher who wrote (233)	9/2/2000 2:52:44 PM
From: rajaggs	Read Replies (1) \| Respond to of 350

Yes, Clinton's mouth has his feet securely implanted already and the price is going up no matter what he mumbles. He is only drawing attention to the gravity of the problem and trying to solve the problem by reverse osmosis. Surely in the land where almost everyone understands supply and demand; the Chief Executive (or Executioner) should see that the long term solution to the problem of energy supply and pricing lies on the demand side and not on the supply side. >> Moreover, you curtail the demand response as well. If consumers believe high prices are here to stay, they will make adjustments to their homes and automobiles. The demand for energy will be less at all prevailing prices if the market believes high prices are here to stay. << You'd better believe it and one way to make them understand it is to tax all automobiles, including diesels, is to tax them at time of purchase, at $1 per cubic centimetre of engine capacity or pound of weight. That'll hit them when they are anteing up $25,000+ at the same time. It'll make companies and consumers think twice about that big V8 or V6 instead of efficient 4-cylinder engine. So will a higher tax on gasoline instead of a band-aid reduction in taxes. Meanwhile I'll call my banker to order a larger vault in anticipation that Billy Joe Bob Clinton will try to mouth his way out of this crisis, starting from the wrong end, as usual.