To: aculeus
Long term contracts at a firm fixed price can redistribute the risk faced due to Arab, Mexican or Russian price arbitrage. Span the contract over about 7 years, and a potential arbitrager will suffer a great deal in the process.
7 posted on
04/19/2006 6:21:52 AM PDT by
.cnI redruM
(Watching the Left turn on Senator McCain amuses me somehow....)
To: .cnI redruM; cb
Since you folk seem to be into the economics of oil, I've got a question. I read somewhere back during the crises of the 70's that the royalties that oil producing nations charge per bbl. are deducted, dollar for dollar from the tax bills of US oil companies. Is this true?
12 posted on
04/19/2006 6:41:26 AM PDT by
Roccus
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