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To: chic_hearne who wrote (37387)	11/14/2000 4:21:55 PM
From: GraceZ	Respond to of 436258

I'm sure they all agree that they'd rather get less money for their oil. Higher oil prices make less efficient producers profitable and encourage more oil exploration. I guess you weren't around during the Texas oil boom. The end result of the boom was a bust that resulted in a depression in oil prices that lasted for years and years.

To: chic_hearne who wrote (37387)	11/14/2000 4:53:26 PM
From: pater tenebrarum	Respond to of 436258

i don't really have an issue with that part - he may well be right that in the long run, a stable oil price in the mid 20's would be best for all. otoh, i can imagine that the producers, having observed that the consuming nations can withstand prices in the 30's are busy re-thinking that particular point. what he doesn't get apparently is that the oil problem is a STRUCTURAL problem, and that only a long period of high prices will serve to help solving it, by encouraging investment in oil infrastructure, increased exploration, etc. he's still making as if it all hinged on whether the Saudis (the only country reputedly left with spare capacity) produce a few drops more or not. that's complete BS. so either he's bullsh*tting everybody, or he really doesn't know squat about oil. in any event, the guy seems a poor choice for the job. you'd expect the energy secretary of all people to have at least a faint inkling of what he's talking about when launching into statements on the oil market.