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

To: Francois H. Gaston who wrote (33564)	12/27/1998 11:06:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

'' Holiday Leftovers'' - food for thought... & the trend is your friend ! ***************************************************************************** re: Y2K could trigger a spike upward in Crude and even Nat Gas - a potential profit taking target -opportunity; Crude futures anyone ? - 'ole Rainwater is looking very schmart right now... <<Y2K threat to imports The Y2K computer problem is a direct threat to U.S. oil imports, says John Warner Jr., corporate executive vice president of Science Applications International Corp., McLean,. Va. Warner said with less than 14 months remaining before the millennium, most countries are many months and some even years behind the U.S. in identifying and correcting Y2K problems. "It is in the national economic and security interest of the U.S. that inadequate worldwide attention to this problem does not result in significant economic and political disruption," he said. Warner noted that the U.S. imports about 50% of the oil it consumes, and "The continued health of the U.S. economy rests on a continuous supply of imported oil. The Y2K computer problem could put this supply in jeopardy." >> **************************************************************************** re: the future for Nat Gas - bodes well for Gas leveraged E&P companies who have been the babies thrown out with the crude oil bathwater... 2 of every 3 new homes going Gas; Gas powered Electric Plants are the new direction. Gas is the enviromentalists choice etc... <<1999 Gas Use The American Gas Association projects that U.S. gas consumption will reach a record 23.2 quadrillion BTUs (quads) in 1999. It said an anticipated return to normal weather patterns should put the industry back in line with the growth pattern of the past decade. AGA said U.S. gas consumption fell 2% in 1998 because, based on the first 10 months of the year, it was the second warmest year since 1895. Most of the growth in 1999 will occur in the residential market, where AGA expects a 13% increase to 5.3 quads. "More than two of every three new homes built in the U.S. in the past few years feature natural gas heat. With this high growth rate, gas utilities are projected to reach 56 million homes by the end of 1999, up from 55 million in 1997." >> **************************************************************************** re: another ''spike'' factor - will the ''calvary'' read - Bill Richardson & the DOE come to the rescue via buying crude for the Strategic Reserves ? Could this alone virtually wipe out the US excess suppply? <<Relief Package Bill Richardson is considering steps the U.S. could take to help independent producers through the current oil price slump. A DOE task force has recommended several options, including buying oil for the Strategic Petroleum Reserve, emergency loans for independents, and tax incentives to maintain marginal production. Richardson plans to propose a relief package in early January. He told a meeting of oilmen in Washington, D.C., "I know the industry is hurting. We are DOE are on your side. I hope it translates into something tangible. Give us some time to develop a policy." Separately, Richardson said he would visit Saudi Arabia in February to encourage the kingdom to allow western oil companies to invest in exploration and production projects there. >> ************************************************************************* re: continued facts for the case of ''the'' bottom... lower ''real'' prices & Rig utilization than prior busts. <<Oil Price at Low The American Petroleum Institute reports November U.S. wellhead prices averaged less than $10/bbl, the lowest level in more than 50 years when adjusted for inflation. API said, "November's wellhead prices were more than 40% lower than a year earlier. These low prices have resulted in widespread oil company budget cuts, especially in the exploration and development of petroleum in the U.S." API's monthly statistical report said U.S. oil output was 6.252 million b/d, down 3.2% from November 1997. It said consequently, only 190 rigs were active in November, the lowest number on record and a 50% plunge since November last year, according to the latest Baker-Hughes Inc. rig count. "By contrast, there were usually 300 to 400 rigs drilling for oil in the U.S. between 1992 and last year, and even during the late 1980s oil bust rigs drilling for oil exceeded 750 at times," API said. >> ****************************************************************************** ...the above info from the Oil & Gas Journal; which I highly recommend - subscribe @ ogjonline.com

To: Francois H. Gaston who wrote (33564)	12/27/1998 7:09:00 PM
From: Paul Angell	Respond to of 95453

Francois, Thanks for the TA on BHI. There is another reason to own this stock and that is that BHI has transformed itself from a premier completion services company (packers and downhole safety valves) into an aggressive integrated services provider in about 5 years. It is one of the biggest directional drilling companies in the world. It has a huge lead in thru-tubing applications such as inflatable plugs and fishing tools run on coiled tubing. Their thru-tubing whipstocks are the most successful and have a market share approaching CSCO. They are the only company with a slihmhole multiphase resistivity tool (maybe a year or more ahead of their competition). On top of this, by acquiring WA, they have laid their hands on a huge seismic database. They also have the ability to apply electric line exploration logging tools to CT Drilling MWD/ LWD, thus becoming a more serious competitor for both SLB and HAL. The problem for BHI (and others) is having enough qualified people to meet the extraordinary demand that will eventually return to this sector. The days of picking up oilfield hands with no skills no longer apply to the miriad of high tech applications in the modern oilfield. Paul. I currently hold shares in AN, MOB, BHI, DO, FLC, UTI.