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

To: GREENLAW4-7 who wrote (33632)	7/17/2004 8:11:51 AM
From: quehubo	Read Replies (2) \| Respond to of 206124

Different cycles different earning patterns. The E&P's have been slow to put their record cash flows to work. We are on a long up cycle. Oil prices are not expensive compared to other periods of economic growth. No doubt though increased energy costs will translate into less purchases at Wallmart. Energy costs have been booming for several years now and the economy pulled out of a recession and industrial energy demand has been escalating. A low USD trumps the incremental fuel costs. Instead of buying crap in Wallmart that people dont need they are consuming more energy this year than last and they are paying more per unit for it. Take a look at page 13 of this Simmons report. Do you think fuel costs have risen so much for these 6 billion people? Energy demand is not so price sensitive when people get their first jobs that enable them to take a step up the energy use ladder. From living in the dark to getting a light, to a refrigerator, to a home generator, to a moped, to a econo car, to a SUV. simmonsco-intl.com