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

To: Don Westermeyer who wrote (28458)	8/27/1998 1:39:00 PM
From: Mike from La.	Respond to of 95453

A tidbit from this week's Oil and gas Journal: "MEES thinks oil producers can take a little comfort from Saudi's decision to cut Sept crude deliveries to term customers by 18% of contract volumes. ... invoked a clause in its contracts enabling supply volumes to be reduced if government policy changes because of a lack of reaction to output cuts. Also: "the UN says Iraq has sold only $1.06 billion worth of crude so far for the May 30-Nov. 25 period of the latest oil-for-aid deal. Iraq was expected to sell $4 billion worth for the period. Baghdad claims it cannot meet the monetary targets because oil prices have plunged...and because its oil production and export facilities are in disrepair." In response to a question about Caspian Sea production a while back on this thread. A full article in the same Oil and Gas Journal about the Caspian Sea. Basically the author says that while the focus has been on the pipelines, the big factor is the amount of money that is needed, which he says is not looking good for the project. His conclusion: "Without extraordinary luck, the expected case for Caspian production is not the wild-eyed 6 million barrels per day. There are steep investment requirements and even the Reference Case production will not be met without extensive and immediate exploration. Recognition of realistic stakes may temper the game and in so doing drive the players to more pragmatic goals that can that can be obtained quickly, if not forsaken in pursuit of petro-fantasies. Fundamentally, delay only restricts the region's potential and narrows the attainable production profile to lower and lower paths." His credentials include working for a firm that specializes in resource assessment of hydrocarbon supply and is a partner in Troika Energy services, which provides consulting services on the countries of the former Soviet Union. He has held positions in geologic research, corporate planning and management at ARCO and has a PhD in economics. Do you see many companies falling all over themselves to invest in this climate, and with Russian firms? Mike from La.