Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Ernest_at_the_Beach

Don’t tell them this. But there is a brilliant strategic move OPEC could make that would SLOW the tidal wave of petroleum production they see coming. This is a secret....

If they were to significantly ramp up production and drive the price of a barrel of oil down to about $40/barrel, the shale development and several other processes would be too expensive to bring oil to market (at least for new ventures). They would have to wait out the market before driving it back up.

Here’s the crutch for them. They would have to accept a low ROI and potentially even some profit loss for a while to stave off the onslaught. They would have to compete (uh oh). But they do have the power right now to affect supply and demand (at least for a little while longer) to the extent that they can manipulate the futures markets.

Don’t worry, they would never dream of doing this.


18 posted on 05/28/2013 12:00:42 PM PDT by Tenacious 1 ("The British are Coming (to confiscate weapons)" - Paul Revere (We know how that ended))
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Tenacious 1
"If they were to significantly ramp up production and drive the price of a barrel of oil down to about $40/barrel, the shale development and several other processes would be too expensive to bring oil to market (at least for new ventures). "

The ideal time to top off the Strategic Petroleum Reserve.

I wonder if comrade obama has replaced any of the taxpayer's oil that he extracted from the SPR and then resold to the taxpayers.
39 posted on 05/29/2013 1:12:52 AM PDT by clearcarbon
[ Post Reply | Private Reply | To 18 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson