I can tell economics is not your forte. If oil prices climb, the marginal wells here in the US will reopen for production and domestic exploration will expand. The current low prices are tied to the Middle East cartels going full tilt to break the small well operators here and elsewhere. These are the allies of the Obama/Clinton crime families and they,not the Russians, have had a very heavy influence in American politics. Iran, Obama’s special Muslim pigs, are also dumping massive amounts of cheap oil to depress prices. This won’t last long because the glut is not as big as people think.
Spot on!
You are right, as prices rise the marginal wells will start production again, but then there is the danger that will force prices down again and lead to failure and being bought up by the majors. This is basically what I said in my third paragraph. How full is Cushing these days?