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

To: Crimson Ghost who wrote (37977)	2/22/1999 7:09:00 PM
From: The Ox	Read Replies (1) \| Respond to of 95453

George, you may be right but I'm not sure that everyone should be expecting a big bounce, for that matter, maybe not much of any bounce at all. We need a change in the supply/demand ratio to reverse the current course. Like any sector based on commodities, it's the supply /demand ratio that's critical. If OPEC announces substantial productions cuts but fails to live up to it's promises, like we've seen all too often in the past, we may get a relief rally but then a return to the downward trend. With advances in O/G drilling and acquisition technologies, it is possible that the very high prices once seen in the crude market won't be seen for a long time, if ever. Oil is now being found all around the world. It may take the leanest, most productive and cost effective companies to generate profits in this sector. Until we see demand increase dramatically over today's levels, this sector could be a major disappointment. I don't subscribe to the big bounce back at this time. IMO, it will take a lot more blood on the streets to see that scenario play out.