[Izzy Dunne]

If I decide that $120/bbl (for example) makes it profitable for me to invest in new technology and get to this oil, what happens to me when the OPEC price goes down?

If I succeed, won't the price go down, because I've just added to the supply?

Won't the sheiks decide they can undercut my price?

So I have a hard time justifying that investment.

[thulldud]

Won't the sheiks decide they can undercut my price?

When the day comes that they can't (because of the added demand), that removes one threat to such an investment.

The threat from Congress still remains.

[MrB]

This is what happened a while (decades ago) back.

Domestic producers started pumping, and OPEC ramped up production to undercut them and make their investment worthless.

[MaxMax]

It's my understanding that the oil companies make the same amount of money
no matter what the price per barrel is. Higher barrel prices means
lower consumption, therefore lower profits. Unless it's their oil to begin with.

Watch what happens when the RATs start losing revenue off oil.
The RATs have the cure, same with tobacco, higher taxes..

Just a thought.

[hinckley buzzard]

If I succeed, won't the price go down, because I've just added to the supply?

Won't the sheiks decide they can undercut my price?

So I have a hard time justifying that investment.

For a preview of the next logical step, go to "Department of Agriculture" and click on "Farm price supports."

[B Knotts]

If I decide that $120/bbl (for example) makes it profitable for me to invest in new technology and get to this oil, what happens to me when the OPEC price goes down?

You're right. And that shows what the people who know what's going on are really thinking. They're afraid oil won't even stay above $50-60.