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

To: Gator II who wrote (23261)	6/2/1998 11:25:00 AM
From: 007	Read Replies (1) \| Respond to of 95453

I hesitate to make any declarations, but something very interesting is developing.

To: Gator II who wrote (23261)	6/2/1998 11:44:00 AM
From: Robert Floyd	Read Replies (1) \| Respond to of 95453

Is price the issue for our service sector? Isn't the real issue here the fact that demand has decreased (due to issues such as the Asia downturn), causing a oversupply on the market? Even if the OPEC ministers succeed in raising oil prices by cutting production, doesn't the lower production lead to less work?

To: Gator II who wrote (23261)	6/2/1998 9:52:00 PM
From: 007	Read Replies (5) \| Respond to of 95453

>I have this nagging feeling that Saudi Arabia et. al, is perfectly willing to maintain this "blue light special" on crude until world-wide drilling programs at the level we saw last year, simply go away and they are assured they will stay away for a while.< Funny, I talked to an Iraqi geologist a couple of weeks ago who had the same view. He doesn't have any inside knowledge, but his opinion was that the Saudis would love to see oil in the single digits so that they are the only ones left standing. I told him that that didn't make sense to me because the increase in volume wouldn't make up for the lower prices, and once prices did rise again, e & p would just resume in the other countries. Anybody else think otherwise? OO7