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

To: aerosappy who wrote (78312)	1/20/2007 7:52:14 AM
From: aerosappy	Read Replies (2) \| Respond to of 206151

Raymond James Energy Market Overview (1/19/07 pre-market): Energy Markets: Crude oil prices are steady in early morning trading today after they briefly went below the $50/bbl mark yesterday. The trigger was the DOE reported petroleum inventory numbers, which showed petroleum stocks balloon as refinery utilization went down and imports increased. Among the doom and gloom, we had a chance to look at the IEA's monthly oil market report and its new projections for non-OPEC supply, which were yet again lowered! While the market seemed to focus on the agency's bearish demand revision, we believe the supply side of the equation seems to have been missed. Since July last year, EIA's projections for 2007 non-OPEC supply have been reduced by a sizeable 700,000 bpd. To reiterate, we think the fundamentals for crude oil remain intact and do not warrant the current prices. Meanwhile, natural gas prices seem to be holding up better today after yesterday's bullish weekly storage numbers from EIA. The bearish sentiment on crude oil yesterday somewhat dampened the market's reaction to the natural gas storage numbers. Also helping the sentiment on natural gas is the eight- to 14-day NOAA weather forecast, which is calling for continued cold weather in the crucial Northeast for the coming two weeks. Schlumberger (SLB/$57.90/OutPerform) Beats Consensus by 8%, EPS from Continuing Ops. of $0.92 vs. $0.85 Consensus. As noted, Schlumberger reported EPS from continuing operations or $0.92, bettering both our estimate of $0.82 and the Street at $0.85. Outperformance was driven by better-than-expected revenues and profitability across the board, as Schlumberger benefited from a strong Eastern Hemisphere and North American market. Bottom Line: This is another solid quarter for Schlumberger. Strong sequential and year-over-year growth in all markets underlines the strength of Schlumberger's core business operations. Western Geco continues to be a growing driver for Schlumberger's bottom line and is indicative of high demand for oil service related activities to fight decline rates and increase reserves. Yesterday, Rowan Companies (RDC/$30.79/Outperform) Announced It Has Elected Robert E. Kramek to its Board of Directors. Mr. Kramek's background is a naval architect and marine engineer. He recently retired from the American Bureau Shipping, where he was serving as president and chief operating officer. Kramek also served as commandment of the United States Coast Guard, where he was a four star admiral. The board plans to seek approval for the election of Mr. Kramek in May during its stockholder meeting. We believe that this announcement will have no bearing on the stock and that Mr. Kramek will make a great addition to the board.