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

To: SargeK who wrote (39884)	3/14/1999 12:32:00 PM
From: diana g	Read Replies (5) \| Respond to of 95453

Re: $11 Oil per Amoco's Fuller Sarge, I think you may have hit the nail on the head here: <<"... I find Fuller's remarks 'friggin unbelievable', unless, of course, he is attempting to influence markets and competition. ...">>> If I were in his position I would be uncertain of the future price of oil but would take the position publicly that I expected prices to go/stay down. He will be negotiating with service companies and drillers. It would be against the interests of his company to do otherwise. (Of course it is possible he really believes this --- there is no way to know.) regards, diana

To: SargeK who wrote (39884)	3/14/1999 7:31:00 PM
From: JungleInvestor	Respond to of 95453

SargeK, I fully agree with you - the BP/Amoco Co-Chairman is wrong about his forecast! However, he is the guy at the top and BP/Amoco is going decrease their capex budget because he believes oil is going lower. The lesson to be learned from this press release is that some companies (and this one is a biggy) will not be increasing their capex quickly even though OPEC agreed to reduce production and oil prices are rising. This will delay earnings increases for the OSS, although it will sure help BP/Amoco's earnings in the short-term. Other companies such as Doug Fant's will increase capex more quickly.