Thread: $139 a barrel!
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Old 06-07-2008, 02:10 PM   #59
Frequitude
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Quote:
Originally Posted by MelBridgeman View Post
How is what is happening now any different than what happened in the 70's? Circumstance may be different, but eventually increase production and less demand will drop the price big time...not unlike what happened in the 80's? History does repeat itself.[/possible ignorance]
While there is some truth to what you say, it is very different compared to the 70's. The world can't up supply nearly as easy. In the 70's, Saudi Arabia just cranked open their wellheads when needed, but they've since found that that damaged their superfields. They manage them much more carefully nowadays.

So yes, certain high risk sources are becoming more economically viable, but we can't up supply even remotely close to as easily...
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