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Microcap & Penny Stocks : Leah Industries, Inc. (OTC-BB-LEAH) -- Ignore unavailable to you. Want to Upgrade?

To: Baldur Fjvlnisson who wrote (1464)	3/8/1999 11:52:00 PM
From: Baldur Fjvlnisson	Respond to of 2153

State of the U.S. oil and gas industry: Barely breathing. Still demand keeps growing, see link in previous post. With Mr. Yeltsin retired to his dacha or the great plains beyond and Mr. Clinton retired to the lecture circuit, we'll be sitting pretty in Siberia in 2001. api.org Economic Decline in the Petroleum Industry U.S. oil and natural gas companies and their employees have been heavily impacted by the dramatic decline in world oil prices, which have fallen to historically low levels. The severe cut in product revenues has put unprecedented pressure on companies to cut costs through mergers, layoffs and reduced investment spending. Lost tax revenue and increased demand for unemployment compensation will adversely affect state and local governments in the nation's oil producing regions. And a sharp drop in capital investment now means less domestic oil and natural gas later. Lost Jobs Nearly 500,000 jobs have been lost in the oil and gas industry since the early 1980s. Between January 1998 and January 1999, 38,400 jobs disappeared, or 11.4 percent of the workforce. In January 1999 alone, a staggering 11,500 jobs in the oil and gas extraction industry were lost. Oklahoma officials estimate that 50,000 jobs are now at risk in companies that supply the oil industry with services and materials. A new company formed from a recent merger plans to lay off over 6,000 workers worldwide. One company said it will dismiss 1,400 workers due to depressed prices, while two others have announced reductions of over 2,400 workers each. One oil service company has announced a 10 percent cut in its worldwide workforce and another said it is reducing its staff by almost 8 percent. And in one California county, where 12,000 people work in the oil industry, 1,000 people, or 8 percent, are being laid off. Capital Investment Estimated spending on exploration and production in the U.S. will drop by 20 percent this year, or $6 billion, according to a recent industry survey. The number of drilling rigs searching for oil in the U.S. fell to 155 last year, the lowest level since complete record-keeping began in 1987. One company cut its capital spending for 1999 by 67 percent because of depressed prices, and another announced a 60 percent reduction. Two companies that are merging will cut total capital expenditures by 45 percent, compared to what each spent last year. An oil service company is reducing its capital expenditures this year by $700 million, or 54 percent. Another is reducing Alaskan investments by $600 million, or 30 percent. Profits and Losses Fourth quarter losses in 1998 are so large that some individual company losses approached $1 billion each. One company lost $892 million, and another lost $794 million. Other companies reported losses of $263 million, $152 million and $99.3 million in 1998's final quarter. Another lost $900 million in 1998, compared to last year's gain of over $300 million. Fourth quarter earnings at one company plunged by 93 percent. Another saw its fourth quarter earnings fall by 80 percent, compared to the 1997 level. Annual declines in profit were also staggering. Net income for one company fell by 74 percent. 2/10/99