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

To: marc chatman who wrote (12200)	2/19/1998 10:09:00 PM
From: JHR	Respond to of 95453

Marc, If OPEC cuts. This would be nothing but good news for this sector. It may be the one point of light for the first half of this year, for as GD ,Thean, and LT have pointed out these stocks are joined at the hip with oil prices in the perception of the money managers. The fact that its true to the degree that the E&P guys could cut their budgets based on sustained lower oil means to me that if OPEC sees they're hurting themselves by giving it away they and they alone at this point could make a difference. If opec cuts, this sector will blast back to where they were in October when this slaughter. all IMHO.

To: marc chatman who wrote (12200)	2/19/1998 11:19:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

marc, An OPEC agreement to cut production and support crude prices would be bullish for virtually all the oil services and drilling companies unless it resulted in significant cutbacks in oil consumption. The reason is that it would improve the visible economics of drilling projects. Probably the companies that would benefit the most would be land drillers. If prices go high enough to warrant drilling cutbacks (unlikely), the same companies that will do best with low-priced oil will do well with high-priced oil -- the deep drillers with the heaviest concentrations in floating rigs. Baird