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Gold/Mining/Energy : American International Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: DRRISK who wrote (6742)	1/19/1998 2:01:00 PM
From: qdog	Respond to of 11888

If you go back a month or two, OPEC raised it's quota's to keep folks addicted to oil. It wasn't stated that way, but that is the gest. Yes you are right that auto is looking at alternate fuel soucres, and I can't remember the company, but Ford, BMW and Mercedes are looking at fuel cell technology. That is hydrogen. Water being two parts hydrogen and one part oxygen. When you combust hydrogen you get......WATER. Actually it's slightly different but close enough. Whether it is feasible or safe is another story, but they are sure looking at it hard. Then there is my all time favorite caveat to energy, oil pump shock. Drive the price high enough, the consumer will go back to fuel efficent cars. Actually couple that with sticker shock at the show room and that really becomes a problem. The fickle consumer is always hard to figure. The irony in the price of crude and I disagree with this Simmons guy, they drove the price up last winter on the fear of supply disruption. The oil companies, looking to improve shareholder value, choose to cutback the storage of crude. They adopted what other industries have gone to in supply, what ever that phrase is, real time inventory (?). That casued the commodity pits to drive prices up on nothing but fear. Oil companies went to great length to educate they were going to do this, clearly stated the reasons, yet the commodity markets drove it up to $25. When Congress started to point fingers the oil companies put that fire out real QUICK. They showed all the leadtime warning that they would cutback on storage and for the reason they were doing it. Oil companies benefited, sure, but manipulate it, no. Presently, we see fear in reverse. There never was a shortage of crude, just a perception of some sort of percieved or manufactured problem. Oil companies don't set the price, free market does at the Merc. Well those boys and girls are doing the reverse to the downside, for various reasons. We may have a slightly higher inventory or reduction of usage, but that is more attributal to a warmer winter than anything. Unless OPEC does what it did in the '70's, there is no oil shock on the horizon. Unless China, overnight, has median income increase to say Japan, how are they going to afford $10,000 cars and $1.00 gal gas to put in it?? Same with India. Problem is those cars aren't $10,000, but much higher. Frankly, we are back to what oil companies have been saying all along, oil is faired value at around $18-20 pb.