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

To: Dwight E. Karlsen who wrote (23387)	6/4/1998 3:44:00 AM
From: Czechsinthemail	Respond to of 95453

6/3/98 Crude-Oil Ends Flat, Product Futures Lower On Bearish Inventory NEW YORK -(Dow Jones)- Crude-oil futures settled little changed, while petroleum-product futures finished modestly lower Wednesday on the New York Mercantile Exchange, with the products pressured by data showing a sharp rise in refined product stocks in the U.S. July crude oil dipped 3 cents to end at $14.81 a barrel. August crude oil also closed down 3 cents at $15.43 a barrel. Among products: July unleaded gasoline lost 0.56 cent to end at 49.75 cents a gallon. July heating oil fell 0.72 cent to finish at 38.72 cents a gallon. However, gasoline and heating oil closed above their worst levels as pressure eased after key support areas held, observers said. July natural gas lost 5 cents to settle at $2.106 per million BTUs. Traders said that crude prices were too low and OPEC's Vienna meeting too near for bears to aggressively establish fresh positions. "We're near the bottom of a well-defined range; no one wants to aggressively sell at these levels until more is heard from OPEC," said a trader. The group will meet June 24 to discuss the state of the oil market and the possibility of making further cuts in production to support still-depressed oil prices. OPEC and non-OPEC producers agreed in March to cut production from April to the end of the year to support the oil market, but actual cuts fell well short of the agreement. Rumors that there would be a meeting this weekend of OPEC and non-OPEC oil officials was cited by some traders as a factor in keeping the July crude oil contract from falling lower. Separately, the American Petroleum Institute Tuesday night reported a 1.832-million-barrel build in gasoline stocks last week. Wednesday morning, the U.S. Department of Energy reported a more bearish 3-million-barrel build. Analysts had expected gasoline stocks to show a small build or draw. U.S. distillate stocks, which include heating oil, rose 3.936 million barrels in the API report. The DOE reported a larger 5.1-million-barrel rise. Analysts had expected a smaller build. July gasoline fell as much as 1.21 cents to an intraday low of 49.10 cents, a low hit back on May 26, before recovering. "The market expected strong summer gasoline demand to draw gasoline stocks lower, but with refineries running hard and imports healthy, demand is more than being met," said an analyst. According to the API, refineries ran at 99.4% of capacity, with some regions reporting higher rates. The DOE showed refineries running at a blistering 100.5%. The API also showed gasoline imports at 393,000 barrels a day, up from 286,000 barrels a day in the prior weekly report. Meanwhile, July heating oil dropped to an intraday low of 38.30 cents, or 1.14 cents lower, before recovering. The contract has support at 37.80 cents.

To: Dwight E. Karlsen who wrote (23387)	6/4/1998 9:48:00 AM
From: Rosemary	Read Replies (1) \| Respond to of 95453

I hope this hasn't been posted already: biz.yahoo.com

To: Dwight E. Karlsen who wrote (23387)	6/4/1998 1:48:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

Dwight, Good! Also here's a tidbit for offshore drillers. For a shallow water jackup say five years ago, my friend from ENSCO told me that it cost about $14,000/day cashflow to run one of these rigs. Assume that inflation has jumped that rate 25% to $17,500/day. Well then the amount that day rates exceed that level is the amount of cash flow which a corporation say like ESV or RDC has available to service debt, buy new rigs, run the corporation. But it makes my point that even if day rates fade back a bit in shallow water, these companies are still going to produce large amounts of cash flow.... For e.g., I believe that RDC has 20 shallow water rigs in its fleet. Assume dayrates to be in the $42,000/day area, and that 85% of the fleet is utilized----That would mean that the RDC shallow water fleet would throw off $416,500/day cash flow or $12,495,000/month or $149,940,000/ year from that portion of RDC's assets..... Sincerely, Doug F.