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

To: diana g who wrote (25303)	7/8/1998 11:37:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Storage/supply levels & International E&P budgets... Is there a factor that we should be taking into consideration; in that given the historic cheap price of crude - shouldn't we expect that importers would be hoarding/importing all of the cheap crude they can (now); as they also realize that in due time, crude will return to higher, if not historic price levels of $18 +/- ? It's cheaper to import this cheap oil now and to store it, than to keep storage capacity unfilled and be buying more expensive oil later... - shouldn't we be discounting ''storage/supply'' levels to a degree; since it is common sense for these guys to be buying & storing all the crude they can store - given the low historic price? They would be morons not to have oil flowing over the top of every storage facility in the U.S. at these prices. In light of the posts of the E&P budgets - where we will still have a 6% INCREASE in the USA over last year and that the International markets will see even a greater rise; looks like a great time to buy Intnl. stocks in deepsea construction/service/seismic areas like CXIPY -( bought today - down recently) and SCSWF (blew through earnings & ELF got a huge contract today - w/ SCSWF getting a contract in turn from ELF) and PGO - major international seismic player or GGY (also down recently) a major equipment & seismic company. ****on the Intnl. E&P front..... (SCSWF wins contract with ELF - was biding against CXIPY - perhaps this is why CXIPY is down...) PARIS, July 8 (Reuters) - Bouygues Offshore said on Wednesday it had won 2.9 billion francs ($475 million) in contracts to fit out Elf Aquitaine's major Girassol oil field development offshore Angola. The announcement, made while shares in the oil and gas supply company were suspended, echoed an earlier statement by GTME subsidiary ETPM, which scooped an equal share of the contracts. Under the total engineering package worth 6.7 billion francs, Bouygues and ETPM will jointly build and install a Floating Production Storage and Offloading (FPSO) with storage capacity of two million barrels of crude and pumping capability of 200,000 barrels a day. This contract's value is 4.2 billion francs, of which Bouygues Offshore said it would get half. The unit will be installed in the second half of the year 2000, said Bouygues, which leads a 50-50 joint-venture with ETPM known as Mar Profundo Girassol. ETPM's parent GTM is part of the Suez Lyonnaise des Eaux utility group. A second contract, for links between the surface and deepsea oil wells 1,350 metres below, goes to Alto Mar Girasssol -- a three-way venture between Bouygues Offshore, ETPM and Stolt Comex Seaway . The value of this contract is was 2.5 billion francs, of which Bouygues Offshore will receive 830 million francs, Bougues said in a statement. Bouygues Offshore shares closed on Tuesday before the announcement at 286.5 francs. The stock exchange said they would resume trading at 1015 GMT on Wednesday. The awards were announced as operator Elf prepared to inaugurate the development phase of Girassol, one of a string of big oil finds which have triggered an offshore investment boom in West Africa. Elf has said it plans to start up the Girassol field by the end of 2000. Analysts estimate the field could contain up to a billion barrels of oil. Elf, as operator, has a 35 percent interest in Girassol. It is developing the fieldin partnership with Esso Exploration Angola which has 20 percent, BP Exploration Angola (16.67 percent), Norwegian state Statoil 1/8STAT.CN 3/8 (13.33 percent), Norsk Hydro (10 percent) and Fina Exploration (five percent). I still say we are at a great time and place to be BUYING ! These International deepwater stocks and stocks like FGII, EVI, DO, FLC. CDG at recent prices like yesterday are opportunities - DO yesterday - a new 52 week low & at less than 10 times next years downward revised earnings ?