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

To: Think4Yourself who wrote (74626)	9/26/2000 10:33:02 AM
From: Tomas	Read Replies (1) \| Respond to of 95453

Forgotten bonanza in oil stocks - The Globe & Mail, September 26 VOX Compiled by Fabrice Taylor Investors heard the wrong cue yesterday when they shed their oil holdings as crude prices dipped. On the surface, it makes sense to lower expectations for oil companies given the drop. But turn a few stones, and you find bargains. The oil slump helps the shares of producers in two ways. The first is by taking pressure off governments and OPEC to do anything drastic to ease prices. This removes a lot of uncertainty over the commodity, and as we know, uncertainty is a stock's worst enemy. The second is that oil, although falling, is approaching a more sustainable price level. Let's assume that oil prices average $29 (U.S.) a barrel in fiscal 2000. Let's then assume -- conservatively -- that oil averages a relatively stable $25 (U.S.) in 2001. Now consider that the commodity price currently built into oil shares is between about $18 and $22. The potential appreciation is fairly evident, especially for companies that are heavier into oil as opposed to gas, and whose shares are selling off sharply.

To: Think4Yourself who wrote (74626)	9/26/2000 10:38:07 AM
From: Archie Meeties	Respond to of 95453

Storing oil on the water isn't profitable - unless you are long crude on the ground.

To: Think4Yourself who wrote (74626)	9/26/2000 10:48:54 AM
From: diana g	Read Replies (2) \| Respond to of 95453

Re --- The 'Missing Barrels' (Again?) Probably most here will remember that, during the previous 'Missing Barrels' snipe hunt, Matt Simmons explained the phenomenon, and pointed out that it had happened previous to that time. And warned that it could happen again. When he opined that the prior missing barrels did _not_ exist, but were 'paper barrels', there was much skepticism. Ultimately he was proved right, as we know, but there was a lengthy period when many people were expecting those barrels to turn up. --- So this is the third 'Missing Barrels' episode. I think this one comes too quickly on the heels of the previous one to easily win credence. But I've been wrong before. I guess we'll see just how many times the market will swallow this story. regards, diana

To: Think4Yourself who wrote (74626)	9/26/2000 10:59:44 AM
From: ItsAllCyclical	Read Replies (8) \| Respond to of 95453

20 Common misconceptions about the oil business... There are so many I thought I'd make a list. Feel free to add to it. 1) Oil and natural gas are one in the same 2) Domestic oil only cost $6-7 to produce therefore oil prices will eventually go back to $10-12 3) Whenever we run into tight supply there are ALWAYS missing barrels to be found 4) Storing oil on tankers is not only profitable but encouraged 5) The general accepted view of finding and bringing new reserves to market is about 2-4 weeks. 6) Oil markets reflect current data. The data itself is excellent and not subject to scrutiny. 7) "Oil analyst" on CNBC study the oil markets before making any statements or predictions 8) The government can bail us out of any energy crisis simply by taping the SPR, SHOR or the SNGR. 9) Oil should not trade like any other commodity on earth. We have a right to cheap oil regardless of the costs. 10) Making oil inexpensive will ensure more cheap oil in the future since that's what people are used to. 11) Depletion does not exist. Someone once found that production was declining, but the data must have been faulty and the person was subsequently shot. 11) There is one price for oil. Blends do not exist. Time has no meaning in oil markets. 12) Our "high-tech" economy is no longer dependent on energy. 13) We can control OPEC. 14) Energy prices should always be removed inflation statistics since energy is not needed by our high-tech economy. 15) The media is not biased when it comes to reporting on energy matters. 16) Oil will always trade back to $18 since historically it's always traded there. 17) There is an infinite supply of oil tankers. 18) Oil prices are the sole factor that determines supply. 19) The best way to encourage the oil business is to tax them heavily in good years and ingore their pleas when they are on the verge of bankrupcy. 20) Larry Kudlow will eventually make a correct prediction regarding oil prices.