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

To: marc chatman who wrote (27442)	8/10/1998 12:29:00 PM
From: Mike from La.	Respond to of 95453

I've had a difficult time getting numbers reflecting the amount of shut-ins. One problem is that there is about a six month time lag for reporting. However, in requesting relief from Congress amounts of between 15-20% of US production being lost has been stated. If accurate, it's fair to assume similar amounts worldwide. One estimate said many small oil producers need $16 to stay in production. Hasn't been there for a long time. Usually when a well is losing money for every barrel it pumps, they don't waste time shutting it down. If the well requires $16 now, the cost of shutting it, and restarting may make it require $18. So chances are, once shut, that's it. But, as I said, no way to actually confirm what's going on, except that is apparent that there is a significant amount of oil involved. MIke