Quote:
Originally Posted by blankall
The only reason they are underwater is due to the low oil prices.... Which is exactly my point. If oil prices were at their natural levels the shale fields would be profitable.
Instead OPEC is using the same simple and dirty trick all monopolists use. Sell at artificially low prices, drive the smaller and developing competition out of business, and then jack up the price.
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Your post confuses me, how do you exactly determine the natural price level for oil? Or is the "natural price level" what you want it to be to turn a profit for you?
Does supply and demand not dictate the price in the oil world anymore? and why should the saudis and opec cut production to prop up the natural price of oil for you?
Instead of the Saudis taking the hit and cutting production they are letting the inefficient producers take it on the chin and eventually it will result in less production and the supply and demand situation will tighten and prices will go back up yet the Saudis won't have given market share away.
There doesn't seem to me to be any cheap or dirty tricks involved here at all just good business even though it might not seem like it from your perspective.