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

To: Mike from La. who wrote (37438)	2/12/1999 11:21:00 AM
From: Crimson Ghost	Read Replies (2) \| Respond to of 95453

Mike; I have a somewhat different take on the oil depression. First real oil prices are much lower now than in the 1980s and overall inflation also is much lower. US government may not care much about the domestic oil industry, but they have got to be concerned about the impact of an extended period of $12 oil on the political stability of a number of foreign governments such as Mexico, Saudi Arabia, etc. An extended period of low oil prices will greatly increase support for Moslem fundamentalism with unpredictable consequences. Not to mention the additional pressure on the Russian economy, thereby increasing that nation's incentive to sell weapons and give nuclear help to regimes the US does not like. My take still is that oil prices have fallen too low even for the US. I think they would like to see crude back around $15. Still extraordinarily cheap. Of course, they will never say this outright, but may be working behind the scenes to bring it about.