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

To: Sharp_End_Of_Drill who wrote (76565)	10/17/2000 8:10:44 PM
From: jim_p	Respond to of 95453

Sharp, Prudent operators would not be trying to over produce their NG wells to take advantage of higher NG prices. You can destroy a well by pulling to hard. The flush production is simply a lag time effect which has historically caused a temporary situation of over supply. This is why we continue to have separate cycles for both oil and NG. Higher oil prices have also helped to increase demand for NG due to switching. If oil goes down due to a world recession, demand for gas will be falling off further at a time when flush production is ramping up supply. Jim