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Politics : Politics of Energy
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To: RetiredNow who wrote (10729)7/6/2009 4:29:01 PM
From: Brumar89  Read Replies (1) of 86355
 
if our oil companies drilled but held the commodity off the market until scarcity drove up prices,

IOW if they did what folks claim they do everytime prices go up.

Fact is, it costs money to lease land, to drill wells, to intall production facilities. It doesn't pay to make big investments and sit on them, earning nothing. Nobody can afford that.

Next you'll say, well don't invest at all in that stuff. Well if you do that, someone else will invest in it and you have nothing. Another way to go out of business.

If the oil was limitless in the ground, then it would make sense to drill and pump continuously. But since there is a limited supply

I won't argue its infinite but the supply does get bigger as prices rise .... that is if prices rise in the future like we all think .... reserves that aren't economical (are high cost) now, will be economic then.

BTW maybe your best investment would be your sons comic books. 100% in a few yrs isn't bad.
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