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Politics : Formerly About Advanced Micro Devices
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To: combjelly who wrote (415269)9/8/2008 2:55:40 PM
From: TimF  Read Replies (1) of 1576155
 
Your response doesn't address the point at all.

The point has absolutely nothing to do with knocking any amount off the price.

Its a discounted future value calculation. The oil is worth extracting now rather than later, if the value extracted is more than the discounted future value of extracting the oil later.

If extracting it now, or extracting later changes the price at the time, that changes what you feed in to the calculations a bit, but isn't likely to change the basic picture.

If you assume the price reduction from drilling now is $0 it actually makes the point somewhat stronger, because your not reducing the current revenue per barrel by extracting more barrels.
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