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

To: Archie Meeties who wrote (19755)	3/5/2003 9:11:45 PM
From: quehubo	Respond to of 206099

Expect the service/drillers to continue to be detached from commodity prices. Be hyper vigilant in observing indications of activity levels increasing and service rates improving. I dont think there is much doubt that commodity prices will be at levels that supported very good activity levels. The real doubt is that these prices will translate into activity levels. RJ & (Jim_P) says that the E&P's will spend their cash flow. The E&P's say they have inadequate prospects ( so why buy and E&P with a lack of prospects?), that they are more interested in strengthening their balance sheets, they cant be sure in the prices will be stable, service costs are too high. etc. The reality is that NG is a very scarce commodity and will be for some time. This means the prices and supply will find an equilibrium point. I suspect this point will be very good for both drillers/service and E&P's.