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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (3633)	11/24/1997 2:18:00 PM
From: RealMuLan	Respond to of 95453

If I remember correctly: there is an article on drilling stocks from Streetbeat of Briefing.com. One of the analysts said something like: as long as the oil price is between the range $18-23 a barrel, drilling stocks will be fine. If it falls out of the range, that means the demand will decline dramatically, or the price will be too high to afford. FWIW.

To: The Perfect Hedge who wrote (3633)	11/24/1997 2:21:00 PM
From: SJS	Respond to of 95453

Well....yes and no. Yes because of the psychology. Everyone say to mentally decouple the two, but no-one does. Yes because if OPEC creates a market "mini-flood", then the drillers don't get the effect of the "tight supply" arguement to fuel their expansion. We push the tight supply problem in the future by some number of years. No, because we've got some downside cushion to keep profitability up until about 16.00 barrel, or so I've been reading. FUD drive this. If anyone thinks that the drillers will suffer if OPEC members all say "what's in it for me to keep my supplies tight when I need the cash", it could be a problem. Just my .02....