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

To: Flan who wrote (5766)	12/19/1997 8:22:00 PM
From: CrabDaddy	Read Replies (2) \| Respond to of 95453

<the E&P companies are going to drill no matter the price of crude> Absolutely - Oil could drop to $10 a barrel and people would still use more and more every year and the oil companies will still need the equipment to get this stuff out of the ground. I don't think the price of oil has a whole lot to do with this industry. If the price goes down people may consume more. The real fact is that a drop in the price of oil does not result in an abundance of oil rigs unless consumption seriously dries up - and a gallon of gas selling for 90 cents won't exactly dampen the rate of consumption. There is a shortage of equipment and services that will not go away overnight. The big oils may be hurt most by a low barrel price - but they still need to get more oil. So the service stocks are safe - even if the big oil company margins deteriorate. Regards CDAd