ERHC Energy Inc (ERHE)

[midtieroil]

Your correlation graph is completely irrelevant because that is not even what we are discussing. The question is do oil prices effect ERHC and of course the answer is yes. Oil prices affect every facet of the oil industry immensely. Go look at the number of small oil companies that go bankrupt when oil prices are down. Why do you think that is? Go look at the number of wells that are drilled when oil prices are down. The rig count typically goes way down. Why do you think that is? Go look at the exploration budgets of oil companies when oil prices are down. Companies slash their exploration budgets. This concept is so basic that I think it is very important to get a grasp on it.

Every oil company in the world does ROI analysis of the projects they do. If the ROI doesn't meet their hurdle rate the project is not done. When oil prices are down, revenues are down and that makes the ROIs lower. Fewer projects get done. Business 101.

Take Chad for instance. That may be marginal to start with. If you reduce revenues by 20% (which is what happens when oil prices go from $100 to $80) a lot of companies won't get involved.

Same goes for people investing in oil and gas companies and their stocks whether it be individual investors or institutions. Far fewer are going to invest during a period of declining or low oil prices. I really hope you can understand this because it is important.

So show us all the theoretical "statistics" you care to and then come back and look at what happens in the real world. Oil prices affect EVERYTHING oil companies do. And what it affects most is small companies trying to raise capital and get partners whether it is ERHC, HDY or any other company on the planet.