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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (5738)	12/22/2001 1:47:02 PM
From: russwinter	Respond to of 36161

<waiting for the commodities to turn> Think the turn will be more supply related. Dearth of capital for exploration, projects, and too much selling below the cost of production (on an all in cost basis). Overall commodity demand has slackened, not disappeared and that's an important distinction. As an example, note how fast rig counts are dropping now. biz.yahoo.com There is about a quarter lag and this will show up in production, and just in time for many of the overworked nuke plants to be shut in the late spring and summer for maintenance and refueling. At the same time the new crop of NG guzzling plants start coming on stream. All it would take is a hot summer, and we'd have another spike.