Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mike from La. who wrote (28049)	8/20/1998 2:00:00 PM
From: upanddown	Read Replies (2) \| Respond to of 95453

Well, Mike, one thing you may be missing is.... About 1,000 wells have been capped in Daqing, Jilin and the Tarim Basin, with output for the first quarter of this year falling by 4.89 million barrels, or 700,000 tons Thats about 60,000 barrels a day. I think you may be kidding yourself about the effects of capping marginal wells. I believe this is mostly small stripper wells producing a few barrels a day. There are lots of them and it would have some effect on production but I really don't think it will be decisive in turning prices upward. As Doug Fant said recently, there are 5 million BPD of unused capacity in the middle east and lots more in places like Venezuela and Mexico. A price turn will still depend on producer discipline to bring S/D into balance, IMHO. Good luck, John

To: Mike from La. who wrote (28049)	8/21/1998 2:19:00 AM
From: pt	Respond to of 95453

Could the traders be using the psychological change in the market as a result of the Asian problems to "pay back" the oil producers for past high prices? Similar to someone's suggestion the E&P companies want to see day rates really crash to pay back the drillers for charging through the nose when demand was high? Sure, sure, efficient markets, too many players for a formal "conspiracy" like this to hold. What it comes down to is we may be seeing an overly-large shifting of the demand curve as a result of the psychological factors that oil buyers are all to happy to take advantage of. Paul P.S. Thanks to all for info on "free" real-time quotes.