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

To: Chuzzlewit who wrote (24590)	6/23/1998 2:41:00 PM
From: pz	Respond to of 95453

Oil +$1.12 :o)

To: Chuzzlewit who wrote (24590)	6/23/1998 6:09:00 PM
From: Gator II	Read Replies (1) \| Respond to of 95453

Hi Chuzzlewit...You wrote: "Market share is irrelevant to governments." Respectfully, if I may stick my nose in here and ask a question...Are statist "governments" capable of selectively embracing many if not most conventional business concepts while simultaneously disregarding such a basic one as seeking to expand one's market share considering the raw political and economic power they would have if they possess sufficient market share to control world oil prices? From the the Saudi's viewpoint, the ability to control (which they are well aware they no longer do) world oil prices would be, it seems to me, a logical objective, tantamount to the natural goal of monopoly as it relates to private industry. Gator II

To: Chuzzlewit who wrote (24590)	6/23/1998 8:55:00 PM
From: pt	Respond to of 95453

Chuzz, Saudi Arabia and Venezuela were reportedly both trying to boost market share. As has been pointed out, there are valid reasons why a government would care about market share. Sorry, but whether you accept them or not, the leaders of those governments believe market share matters. One of the basic reasons for creating a cartel such as OPEC is to bring together producers who, in the aggregate, have sufficient market share to wield substantial power over the market. As I mentioned earlier, neither price, demand, nor supply alone can be pointed to as a sole factor. They work together. If we have a world-wide depression and demand for oil plummets, that would not be good for drillers even if the price of oil were high. But given that oil consumption has virtually always gone up year-over-year, and at worst is likely to be flat to very slightly down for 1998 over 1997, it is price and the risk/reward analysis that remains the most dominant concern to drillers. Paul