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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (16144)	12/23/2002 4:16:37 PM
From: wildandwonderful	Read Replies (2) \| Respond to of 206334

energyplay: No one is going to drill on $4.50 gas . E&P are going to drill only what they expect oil and gas prices are going to be in 9 months to 1 year from now.Still too many unknowns like Iraq War, Winter season etc for them to be spinning the Bit. I dont expect drilling to pick up till summer of 2003. Companies are going to drill their 2 and 3 grade prospects before they go for new seismic., so it might be a while before seismic companies pick up.

To: energyplay who wrote (16144)	12/23/2002 11:04:46 PM
From: Sharp_End_Of_Drill	Read Replies (2) \| Respond to of 206334

EP, I'd say $4.50 gas for an extended period of time will kick off a large drilling boom. The extended period is of course the catch, companies will want some visibility going forward. I'd also say we could drill for a couple years without any major new seismic as the portfolios of prospects are worked through. The consolidation of E&P firms has resulted in long lists of prospects, many of which were put on the back burner because they didn't meet the criteria of the (now) larger companies. On a related but different topic, I can foresee some political consequences coming down the pipeline from these high oil & gas prices and lax drilling. Companies will eventually get hit with accusations of profiteering, i.e. reaping all the high dollar income while doing little to find new sources of production. There will be talk of windfall taxes, and much political gum wagging. Sharp Sharp