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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 (4053)	12/1/1997 12:34:00 PM
From: Marc L. Greenberg	Read Replies (3) \| Respond to of 95453

FWIW, here is a thought: If I were the CEO of a big oil company, thinking in the long-term, I would want to reduce my dependence on politically unstable regions. It follows that exploration in the Gulf, the North Sea, etc., should be a priority. If this reasoning is correct, it should mean that the drillers will do well in the long run. I'd be interested in others' views on this. Marc

To: The Perfect Hedge who wrote (4053)	12/1/1997 12:35:00 PM
From: bw	Respond to of 95453

Glen..This was Daniel Yergin from Cambridge Energy Research, and he also stated that the Asia problem is significant in that oil is paid for in Dollars. With the meltdown of their currencies, this makes the price of oil much more restrictive to these growing economies and will exacerbate the problem. He thinks the price of oil will stabilize $1-$2 dollars lower in '98 than in '97; this if political situation with Iraq doesn't deteriorate. He did say that the drillers should maintain their markets...but didn't seem overly bullish on the situation either...