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

To: A. Geiche who wrote (37896)	2/20/1999 3:21:00 PM
From: Crimson Ghost	Respond to of 95453

US economy does benefit from cheap oil. But there are major risks if prices stay low for a lengthy period. Massive defaults on bank energy loans. Escalating instability in a number of foreign countries, including Saudi Arabia. The destruction of a good portion of the domestic oil industry. Besides the choice now is not between cheap oil and expensive oi.Rather the choice is between super cheap oil and cheap oil. A rise to $15 would still leave crude extraordinarily inexpensive by historical standards. Too, anybody with an ounce of brains knows that the longer oil stays at current levels, the bigger will be the inevitable rebound. If oil stays at these levels for say 2 years, the aftermath will be very expensive oil. Not $15, but more like $25-30.