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To: arthurus
After the Arab Oil Crisis American oil industry development kicked into high gear fueled by high oil prices.

As those resources came online, the Saudis opened the taps and crashed the price of oil to the $ 10 a bbl. level.

American oil producers list their shirts so badly it took 3 years sky rocket oil prices to convince them start drilling again.

Of course the Saudis are responding to competitive pressure.

History shows they respond ruthlessly and effectively

58 posted on 10/14/2014 7:38:17 AM PDT by rdcbn
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To: rdcbn

That crashing of oil prices is what is keeping the coal industry from using coal for fuel production. Cost to much to setup a plant.


61 posted on 10/14/2014 9:05:41 AM PDT by jimpick
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To: rdcbn

They respond as rational actors in the market.


63 posted on 10/14/2014 9:33:47 AM PDT by arthurus
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To: rdcbn

As for the Arctic, if the Russians were anticipating ice free conditions in the near future, think again. If planning to work a ocean field with ice in place, more expensive to get and deliver. They would need technical assistance.

The OPEC guys import the majority of their base food staples from those importing oil. So far, no one is applying this leverage. ISIS has compromised the indigenous farming operations... expect shortages there if not famine.


66 posted on 10/14/2014 12:36:36 PM PDT by Ozark Tom
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