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

To: Wallace Rivers who wrote (28245)	8/24/1998 6:25:00 PM
From: Mike from La.	Respond to of 95453

Following through on the article about Richardson saying he would consider buying $420 million worth of oil if the House approves. Using a price of $16 per barrel, that would buy a little over 26 million barrels. The last API report shows 344 million bls in storage. 344-26=318 million bls. One year ago there was 308 million barrels in storage, before the glut started. Pretty close. Definitely removes the overhang. The Chairman of the House Appropriations Committee is Bob Livingston from LA., who you can be sure has already been informed of the opinion of the oil industry in La. And who can argue with the logic of building up the reserve while prices are low? They don't even have to mention the real reason, supporting oil prices. I don't know the mechanics of such a buy. Do they buy it from present inventory, or from future deliveries? I think it works out the same. Note that Bill Richardson included this in his first speech as Energy Secretary. I think it's a done deal. If so, it will mark the great turnaround. Mike from La.