Rising gas prices fuel e-tailer anxieties

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I didn't argue that they aren't at capacity.

I simply pointed out that if they thought oil prices would spike the way you beleive in 5-10 years, they would be irrational to produce at max capacity today.

Sure, the Saudi's are our "friends", but only in a business sense. They wouldn't slit their throats for us. If they beleived that they were 1) about to run out of oil and 2) prices would spike dramatically, why pump at max today? These guys aren't dummies. They've all been to western universities to study energy economics, so they understand the relationship between interest rates and the question of when in time to manage production.

So if you owned an oil field, would you be producing at max capacity today?

My point is that by their actions, OPEC is showing that it doesn't agree with your forecast. Otherwise, they would ramping back production and either cashing in their T bonds, or selling their own. I'm not saying they are right, just pointing out what their choices prove are their assumptions about the future.

Posted by: enduser_z   Posted on: 08/19/05 You are currently: a Guest | Members login | Terms of Use

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