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

To: VLAD who wrote (37418)	2/12/1999 12:29:00 AM
From: Dwight E. Karlsen	Respond to of 95453

Well there you go. I agree. So Big Oil makes less money. As for the drillers...keep in mind how FLC got started: The founder was going around buying up drilling rigs that were stacked and rusting during the last bust. When Big Oil needs to increase their exploration again, there will be somebody there with a rig ready to go to work. The bottom line (in my rather ignorant opinion) is that the entire OS sector could go into hibernation and yet the world would survive--indeed it would hardly even notice.

To: VLAD who wrote (37418)	2/12/1999 1:02:00 PM
From: Douglas V. Fant	Respond to of 95453

VLAD, You are right in that refining is making lots of money right now- but it does not make up for the losses on the E&P side of the business. And commodity chemicals businesses are "in the tank" too. Note too that internally each business division more or less stands on its own in an energy company. Thus those dollars earned in the refining business while they go to the bottom line of the company, generally do not make their way over to the E&P side of the business to fund projects. The E&P projects on their own must stand as viable business ventures. Thus the cutbacks in E&P due to the oil price drop, even though refining has done pretty well over the last 18 months...