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

To: jbe who wrote (20922)	4/30/1998 6:29:00 PM
From: j g cordes	Read Replies (2) \| Respond to of 95453

A question to the oil thread.. If one can explain why this scenario isn't bearish for exploration. There's enough oil currently flowing and on tap to depress prices and overload supplies on hand. Because of this depression of price the petroleum industry has agreed to cut back production at the well heads around the world with some agreement on who can produce how much or else the Saudi pumps will drop prices reallllly low and hurt the higher cost producers (most everyone else). This dropping of production will allow supplies to shrink and demand/costs to come up to a more fair dollar per barrel delivered. If supplies are being artifically contained then this must cut back in some measure the need to open and explore new wells... while only making marginally better the services to increase flow from old wells. Looking at the charts of SLB and HAL for example they're near their all time highs with the current prospect of demand cutbacks. If their services are being used to open the Caspian fields then doesn't this again add to the number of potential spigots thus again dropping the price of crude? Seems to me the oils are like the memory chip producers, too much capacity, with great R&D continuing to lower costs while increasing yield from old wells. Last, isn't the world demand for oil stabilized to down with Asian stretching its weakness, the US topping out for the summer season and Europe flat? Jim P.S. yea, I know I stepped in a mine field.

To: jbe who wrote (20922)	4/30/1998 6:59:00 PM
From: upanddown	Read Replies (2) \| Respond to of 95453

NEW HIGH: Newpark Resources (NR). Closed at 24.0625 (previous 52-week high: 23.75). (Question: why has this outfit attracted so little attention on this thread?) Good question...I brought it up about 10 days and +20% ago with no response. We do tend to concentrate on a relative handful of stocks. ESV,GLM,NE,RIG,TDW,FGII,SLB,anything-MAR.....we got them babies covered like a blanket. A lot of good-sized outfits with great numbers like NR,KEG,DAN,SII,VTS,MDR really get scant attention. I would like to get more info about relative value within the sector but if not here, where ? Best, John

To: jbe who wrote (20922)	4/30/1998 7:12:00 PM
From: waverider	Read Replies (1) \| Respond to of 95453

This is a market that has tremendous strength. Do not fear. Our time will come. At risk of ticking off someone else here... Luc, I admire your guts for posting publicly your prediction of a general market nightmare this week. It almost appeared as if it was going to happen. But just when folks were beginning to panic... As of today we have the lowest inflation rate in 35 years. Labor costs came out much lower than expected. The 30 year bond rallied and had a .1%+ interest rate drop...that is a major one day change. No wonder the general market rallied. The week isn't over yet, but it appears to me that once again the market continues to do the same old thing...it is reflecting an outstanding economy and rising profit margins. Short term fears aside, we're in a bull market that continues to reward those who grit their teeth and buy when prices drop. We gave back a little today (very little). But as Ron has posted earlier, our sector appears to be in a definite uptrend. Good Luck to all, <H>