Energy, Energy Service, Natural Gas &amp; Oil Sectors

Top 2. Feb 24, 1999 4:16 PM

» Gene - Energy Prices

Yes - No one can predict the exact bottom but as Asia bottoms out, they'll rev up their demand for oil. First the energy consolidations have to run its course. I'm bottom fishing Transocean and will be analyzing and dollar cost averaging some of the quality stocks here. There is more to the stock market than the Techs (heresy here!)

FWIW.....Gene

-- posted by Gene

Top 3. Feb 27, 1999 6:26 AM

» RandeS - I'm in the camp that is calling for still-lower oil prices.

I'm in the camp that is calling for still-lower oil prices. Taking the plunge with the oil stocks now or holding on for dear life is dead money or worse for the forseeable future. Some are calling for $8 barrel. Won't go that far out on the limb, but I believe will go below $10 and hover around there for a long, long time before we ever see $20 plus again. (Barring the offhand nuclear explosion in Saudi Arabia, of course.)

-- posted by RandeS

Top 4. Feb 27, 1999 7:16 AM

» Hugs - lower oil prices

Most people must believe that oil prices may go lower. (Aren't there always the greatest number of bears at the very bottom?...isn't that why it's the bottom?)

It may not rise quickly (OPEC could change that in a heartbeat...but most people, again, think they will accomplish nothing...again...)however, it would appear that Mr. Greenspan has spoken regarding it (and...it seems most do not believe he is "cued in" to what's happening, or what will be happening in this sector.)

Somebody wrote that real bullishness starts slowly. As much as it's nice to get a "pop" once long a stock, a slow but steady rise beats the pants off the stomach wrenching volatility of up 35%, down 25%, down 15%, up 15%, up 10%, down 25%, up 20%... (ahhh, but then it wouldn't be in the inter"nut" sector...)

After listening to the bulls (what few can be found) and bears re the price of oil, I think I'll lean towards Greenspan. Just maybe he knows what lower oil prices would do to the economy... and maybe he dosen't like that scenario. Or, maybe it's something else in the global economic picture he knows is around the corner.

-- posted by Hugs

Top 5. Feb 27, 1999 7:32 AM

» Jaybird248 - A Less Thirsty World

Oil prices are where they are for good reason...and that reason is the stupidity of OPEC in the 1970s.

For short term gain and a couple more Rolls-Royces in the driveway, the shieks forced a revolution on the consumption side. The average auto now gets nearly three times the MPG it got in the 60s, even with all the SUVs on the road. Automakers are now seriously capable of producing a roomy, performing 60-70 MPG car whenever demand is there for it.

In addition, the burst of exploration engendered by the oil shocks has identified billions of barrels out of OPEC's control, and tappable at any time they are needed. The future for oil consumption is even less rosy. We will be into hydrogen as a fuel within 20 years.

Meanwhile, the OPEC nations are hooked on their western luxuries, with no other way to pay but their oil. Bottom line: They no longer have an oil weapon in their arsenal.

This is structural change, and while oil prices may not go lower, IMO, they won't go much higher. The oil well as a source of inflation is dry.

-- posted by Jaybird248

Top 6. Feb 27, 1999 7:51 AM

» Hugs - growl....

A real plethora of oil bears it seems...

-- posted by Hugs