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

To: Big Dog who wrote (14965)	3/16/1998 9:50:00 PM
From: Thean	Read Replies (1) \| Respond to of 95453

Big Dog - thanks for your parable. Heck, let me interpret it for everyone and you don't have to tell me if I'm right. The FLC rumor is around and it has been pressuring the stock for a while. To prosper, buy a number of other drillers and dump FLC. Sticking with one FLC egg in one big basket is foolish when there is such nasty rumor waiting to materialize. Learn something about Venezuela today. Talk to a Venezuela friend and am now convinced Venezuela WILL NEVER LOWER their oil output until at least by the end of the year when the election is over and the right president is chosen. Here is the scoop. 85% of the country's revenue is oil. Their currency is losing ground against the green bag. Their inflation rate is rising every month, from 20% to 30% to 75% as projected by the government this year. The government want to raise tax but they have one big problem. This year is an election year and the leading candidate is an ex-military guy who does not read books. The current president has to step down but he is lobbying hard for his candidate. However, there is a strong chance that if this ex-military guy wins there will be an immediate coup to oust him from the military faction loyal to the current government. So, they need every single drop of oil money to feed the country and try to keep everyone happy. Net - keep pumping at all cost. OPEC does not exist. Even if it does, Venezuela does not consider itself a member anyway. The story sounds familiar? Similar stories can be constructed with some tweak with Nigeria and Indonesia. Oil price will not be stabilize at $17-$18 until people can see the current oversupply reduced.