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

To: Think4Yourself who wrote (45111)	5/20/1999 12:35:00 PM
From: Captain James T. Kirk	Respond to of 95453

Oil brushes new lows as Russia supply booms By Andrew Mitchell LONDON, May 20 (Reuters) - Oil prices lingered near recent lows on Thursday as booming oil exports from territories of the former Soviet Union (FSU) undermined OPEC's supply restraints. International benchmark Brent fell back briefly below $15 a barrel in early trade to its lowest level for a month before recovering to $15.03 around midday, still more than $2 below early May highs. Prices have come under pressure as crude and petroleum products exports from Russia and its ex-Soviet neighbours rose 300,000 barrels a day (bpd) in April to four million barrels daily, said London's Energy Market Consultants (EMC). April supplies were 25 percent higher than the 3.2 million bpd of April 1998 as the collapse of the Russian economy and a weak rouble combined with looser export restrictions to slice into domestic demand, EMC said in a report on Thursday. Increased oil export capacity in recent months has accelerated the outward rush. ''It looks increasingly likely that FSU net oil exports could rise to new highs this summer, possibly to as much as 4.5 million bpd,'' said EMC. Swelling Russian exports have helped knock back a rally that hoisted prices up from historic lows below $10 as OPEC and non-OPEC producers -- including Russia -- implemented March's 2.1 million bpd supply cut deal. Hopes that disruptions to Iraqi 'oil-for-food' sales could help supply cut efforts faded as the U.N. Security Council's five permanent members agreed late on Wednesday to extend sales for another six months without any changes to the current deal. Approval is still needed from Baghdad and from the full U.N. Security Council. But Wednesday's move makes a long gap in Iraq's two million bpd of crude exports less likely when the current six month phase expires on Monday. The steep rise in crude values between mid-February and early May left refined product prices trailing, forcing refiners to cut back their operations. And recent data from the vast U.S. market showed producers still have plenty of work to do to mop up a glut of spare oil swilling around world storage tanks. Saudi Arabia has called for rigorous compliance with the supply deal to raise prices, with a Saudi official saying on Wednesday that the kingdom was determined to do all it can to lift world crude prices to $18 to $20 a barrel.

To: Think4Yourself who wrote (45111)	5/20/1999 12:41:00 PM
From: marc chatman	Respond to of 95453

<<doesn't that send the message that they can be pushed around?>> Perhaps some of the insiders have a better perspective, but my simple opinion is that they (and all the drillers) can be pushed around -- as long as the oil companies have the upper hand in terms of rig supply and demand. It would be kind of cute if the drillers started breaking unfavorable contracts when stacked rigs are in short supply. Of course, that won't happen because the customer is always right.

To: Think4Yourself who wrote (45111)	5/20/1999 12:43:00 PM
From: RealMuLan	Read Replies (1) \| Respond to of 95453

That article from Bloomberg said <<"New rigs often take longer than expected to build, and many oil companies are now using the delays to get out of contracts and save money, said Byron Dunn, a Warburg Dillon Read analyst. Last month BP Amoco Plc canceled a contract with R&B Falcon, the fourth-largest U.S. driller, because of delays in a $270 million rig upgrade. ''It's a pervasive problem in the industry,'' said Dunn, who rates R&B Falcon shares a ''buy.''>> So I guess this may happen to other driller companies too. This is from Yahoo FLC thread. I guess small investors are always the last one to know. messages.yahoo.com ESTIMATE REVISIONS: FLC: HANIFEN IMHOFF decreased estimate for fiscal year ending 12/99 from $0.09 to $-0.20 on 05/10/99 FLC: HANIFEN IMHOFF decreased estimate for quarter ending 06/99 from $0.65 to $-0.08 on 05/10/99 FLC: HANIFEN IMHOFF decreased estimate for quarter ending 09/99 from $0.70 to $-0.06 on 05/10/99 FLC: HANIFEN IMHOFF decreased estimate for quarter ending 12/99 from $0.73 to $-0.06 on 05/10/99 FLC: JEFFERIES & CO. decreased estimate for fiscal year ending 12/99 from $0.03 to $-0.15 on 05/14/99 FLC: JEFFERIES & CO. decreased estimate for quarter ending 06/99 from $-0.03 to $-0.07 on 05/14/99 FLC: JEFFERIES & CO. decreased estimate for quarter ending 09/99 from $0.00 to $-0.05 on 05/14/99 FLC: JEFFERIES & CO. decreased estimate for quarter ending 12/99 from $0.06 to $-0.04 on 05/14/99 RIG: FIRST UNION CAP decreased estimate for fiscal year ending 12/99 from $2.28 to $2.19 on 05/19/99 RIG: FIRST UNION CAP decreased estimate for quarter ending 06/99 from $0.57 to $0.55 on 05/19/99 RIG: FIRST UNION CAP decreased estimate for quarter ending 12/99 from $0.44 to $0.41 on 05/19/99 VRC: JEFFERIES & CO. decreased estimate for fiscal year ending 12/99 from $1.30 to $0.60 on 05/14/99 VRC: JEFFERIES & CO. decreased estimate for quarter ending 06/99 from $0.37 to $0.16 on 05/14/99 VRC: JEFFERIES & CO. decreased estimate for quarter ending 09/99 from $0.40 to $0.14 on 05/14/99 VRC: JEFFERIES & CO. decreased estimate for quarter ending 12/99 from $0.42 to $0.12 on 05/14/99