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

To: chuck weir who wrote (8501)	1/16/1998 7:00:00 PM
From: Teddy	Respond to of 95453

RE: "Teddy, so how should the price of oil in Mexico/Venezula/others be used?" Chuck, i know almost nothing about grades/prices of oil. i did post that the average January prices these countries received is significantly below the average price of Brent or Sweet. Message 3181158 That may be one of the reasons Deep Water (North Sea and Africa) is the place to drill now: Large reserves of high grade oil. Also, i think E&P companies realise that the price of oil will change from the time they spud the well until the pump the last drop. From what i have seen, companies still believe that the averge price for this year will be plenty high enough. The Global Marine CEO pretty much layed the issue to rest in my mind. He said something like: The Drilling industry is fueled by the anticipated future demand for oil (in the huge 10 year Macro sense) and the current shortage of Rigs (which will remain in tight supply because old rigs are retired faster than new figs are built). Makes sense to me. Best wishes