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To: Iron Munro

Yes but why would the oil companies produce MORE oil when they are doing so well with so LITTLE?


36 posted on 06/06/2009 6:31:29 PM PDT by ZULU (God guts and guns made America great. Non nobis, non nobis Domine, sed nomini tuo da gloriam.)
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To: ZULU
why would the oil companies produce MORE oil when they are doing so well with so LITTLE?

Just by the very nature of cartels, prices are artificially high because supply is constrained and consumers are chasing limited supply. Rogue cartel members always try to cheat and sell more at the inflated price than the cartel group agreed to. If they can get away with it, the rogue members increase their market share and make a windfall profit because, in effect, they don't have any competition.

37 posted on 06/06/2009 6:54:23 PM PDT by balls
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