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

To: Crimson Ghost who wrote (30829)	10/17/1998 11:15:00 AM
From: Paul Angell	Read Replies (3) \| Respond to of 95453

George, You could argue that at about any rally in the current volatile market being a suckers rally. I make a point of never selling when stocks are going up. I had to save your post and print it out. I am going to read it again but here are my first impressions: Oil is finite and obviously as some stage there will be a price rise associated with increasing scarcity. (or perception of scarcity) But surely this is good news for the oil industry. Another missing factor is that we have not explored everywhere yet. New oil provinces are yet to be found. N.Sea elephants have been largely discovered but Atlantic margin has only just began. Many promising discoveries have been found. We are drilling down in Angola and hitting oil in almost every well. This is phenomenal for exploration drilling. West Africa is not even in the minds of the "so-called economic experts" All we need is the locals to stop shooting at us and we'll be OK. There are huge oil and gas plays in Sakhalin we are partnering with some Russian oil cos to explore here. The Caspian story is still unfolding. High potential in all those -stan countries.. The other fundamental flaw is that reservoirs can be exploited more cost effectively nowadays with horizontal wells. We get 300 - 400% the production for 30% more cost. This is dependendent on reservoir thickness, rock and fluid properties; but it particularly favors thin plays and tight rock. Lastly. Not one mention of natural gas. When looking at world energy this has to be included. We are not going to fly planes on it, but we are going to heat homes and generate electricity. Paul. PS I reiterate, I hear rumors of someone going after Anardarko (APC). I am buying for sector reasons and hoping to catch the updraft.