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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (5899)	10/21/1998 10:50:00 AM
From: JZGalt	Read Replies (2) \| Respond to of 18928

Tom and Jim, I'm mostly involved with the oil service sector, not the oil business as a whole. BP/Amoco is going to be a huge company after the merger, but their competitative strengths and weaknesses are something I have never looked at. I _think_ that being in the refining end of the market will continue to be the place to be until Asia starts to recover and puts the pressure back on the price of oil. Since BP and Amoco will be an integrated company (both refining and production) one part of the company will prosper no matter what happens to the price of oil. <<Like lakefront property, we're not making new oil patches all that frequently any more!>> Not exactly true. Although no new oil patches are being created, current technology is extending the life of current fields, and new fields in the offshore area are now more readily accessible. Couple that with the probability that the Caspian Sea is becoming a major development area after coming out from behind the iron curtain and new fields are being discovered off the coast of Africa in some of the poorer nations of the world, you have a supply demand imbalance continuing for quite a while until economic expansion picks up again. It all depends on your timeframe. ---- Dave