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

To: Marc L. Greenberg who wrote (4054)	12/1/1997 12:39:00 PM
From: Broken_Clock	Respond to of 95453

I agree completely...but in the meantime the big oil boys have you and me to pay lots of taxes so the good ol' USA army can bail their big oil asses out of the fire like the last GULF war(was that Gulf Oil?).

To: Marc L. Greenberg who wrote (4054)	12/1/1997 1:09:00 PM
From: james paterson	Respond to of 95453

Marc, "If I were the CEO of a big oil Co., thinking in the long term, I would want to reduce my dependence om politically unstable regions". I t would be nice to think that they are really thinking long term, but I think that they are pretty strongly focused on earnings that their options & bonuses depend on i.e. 2 or 3 Qs. As far as the unstable regions go, they would love to follow the French into Iran where exploration & production costs are a fraction of the north sea & gulf of Mexico. James

To: Marc L. Greenberg who wrote (4054)	12/1/1997 1:10:00 PM
From: John Guild	Read Replies (1) \| Respond to of 95453

Marc Greenberg writes: >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.< WRONG. Oil/Gas companies are generally good at coping/managing within a political unstable environment. They have been doing so for many years. Understand this, the cards are held by the lowest cost producers, i.e., Middle East producers. As product prices drop, the high cost producers- those having deep water plays, higher cost North Sea production, HTHP fields, etc., will re-align their budgets in those basins to de-emphasize drilling. Following this, rigs involved with these high cost plays will begin to drop their day rates as they attempt to maintain share in a shrinking market. It's an old bloody story. -John Guild, P.E.