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To: proxy_user

>Another billion or so from the US would have very little impact on prices.

I’m tempted to laugh, but it would be counter productive and you might take it the wrong way.
To correct you, it would have an IMMEDIATE impact on prices here in this country.

A change in current policy would be the dynamic that would drive down prices for a decade.


51 posted on 03/01/2011 6:09:24 AM PST by bill1952 (Choice is an illusion created between those with power - and those without)
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To: bill1952

There is only one price for a barrel of oil, and that is the world price.

How much an additional 3% production would impact the world price depends on demand elasticity. Oil is typically low-elasticity, so in theory a 3% increase in supply would have a considerable effect. However, this is in the absence of other factors, such as a corresponding Saudi cutback to maintain price levels.


52 posted on 03/01/2011 6:20:19 AM PST by proxy_user
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To: bill1952
Bill....I'd have to know...what you are thinking exactly..per what change in policy? And how..could this "change" drive down prices for decades?
92 posted on 03/01/2011 10:00:48 AM PST by Osage Orange (MOLON LABE)
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