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

To: Gameboy who wrote (27069)	8/5/1998 7:53:00 AM
From: marc chatman	Read Replies (1) \| Respond to of 95453

Perhaps, but I think he is saying that the impact of higher oil prices would be felt most immediately by the companies holding the commodity. I'm assuming it would take awhile for higher commodity prices to translate to higher day rates (hopefully the stocks would move first in anticipation of higher day rates). Another point, not directed to you, is in response to the argument I see repeatedly on this thread that oil prices must go higher because there is a finite amount in the ground. Well, there has always been a finite amount of oil in the ground. People know this, and it doesn't matter. The issue now is how much is pumped vs. how much is used. Perhaps someday in 20 or 30 years, the world will panic with the realization its oil is running out, hoarding will begin, and prices will shoot to $100/barrel. Of course, at that time, the drillers may not be worth a fraction of their current prices because they will be in a sunset business. Crude futures back down near their overnight lows.