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Gold/Mining/Energy : Oil & Gas Price Economics -- Ignore unavailable to you. Want to Upgrade?

To: Razorbak who wrote (94)	4/22/1999 11:11:00 PM
From: jackie	Respond to of 350

This actually makes sense because of its moderation. However, notice the focus on greater than 18. Does this not imply the moderate level of oil prices should be at 18? Once the GAAP rules are removed, the break even for the best of the oil and gas producers is 16. What does level of 18 per barrel suggest other than this should be 'fair' price for oil? Regards, Jack

To: Razorbak who wrote (94)	4/25/1999 9:30:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 350

Razor, These guys are on the right track IMO. And it would be better for the entire world oil markets if OPEC does in fact produce enough oil to prevent the price from going over $18. If prices go over $18 then too much production will come on line and we will have another crash. Better to keep prices low in order to prevent the wild swings. Until Asian demand picks back up and the Russians & Latin America get their act together economically, oil prices are gonna be stuck in a narrow range of $14 -- 16. IMO the outlook for US nat. gas prices is much better. The investment play for the next 6 months at least is in the nat. gas E&P companies.