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

To: Chuzzlewit who wrote (17967)	4/4/1998 12:53:00 PM
From: waverider	Read Replies (1) \| Respond to of 95453

High oil prices. Paul, I'm really confused now. I know I read a logical explanation here for why very high crude prices would be bad for our companies, but I still don't get it. Why would the volume of crude pumped out of the ground drop if oil prices turned up sharply? Is this what you are saying? Price of oil rises. Less oil is used on the consumer end. Existing reserves last longer. Majors make more money because: a. they can cut back on drilling costs b. they make huge profits by selling oil obtained when it was cheap Am I on the right track?