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

To: Broken_Clock who wrote (38248)	2/24/1999 9:24:00 PM
From: John Carpenter	Read Replies (3) \| Respond to of 95453

I'm going to see if I can find what distant crude futures are trading at(i.e. how much of a premium to the spot contracts etc.) I sense that Greenspan is a pure Capitalist. If the Saudis have the lowest production costs, then to hell with American producers- let them do something else with their lives. I guess in Greenspan's analysis, the optimal allocation of resources(i.e. getting rid of excess, high cost production) is desirable even if American hides and drilling companies are driven to extinction. It sounds like something out of Adam Smith's "The Wealth of Nations" -1776. Greenspan's implying that the Saudis have a comparative advantage with crude production. To hell with high cost producers- even if they are American. The Americans can be retrained in the technology sector where the U.S. has a comparative advantage and so on.