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

To: stanley new who wrote (21783)	5/11/1998 12:18:00 AM
From: Douglas V. Fant	Read Replies (2) \| Respond to of 95453

Stanley, You raise an important point on energy companies which directly impacts oilfield service sector business- and that's the booked reserves to production ratio. Generally any energy company wants to maintain a 10:1 ratio of proven reserves to current annual production, whether company-wide, or just division-wide, or even just field wide. That is you want to have ten years of current annual production proven and there "behind the pipe", and available for future development and eventual production. The desire to maintain that ratio, or to improve that ratio annually at some given pace helps drive future oil/gas field exploration & development planning. This motivates the pace of oil & gas exploration & development actvity at an energy company. The current price of oil or gas motivates as to which prospects one drills.... Sincerely, Doug F.