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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (226617)	3/28/2005 12:24:56 AM
From: Elroy	Read Replies (1) \| Respond to of 1578250

It is believed by many energy pundits that Saudis are not increasing production not because of capacity shortfalls, but rather because their supply is finite and they do not want to deplete any faster than they currently are. Are you saying that conclusion is incorrect? Well your conclusion is correct, but it doesn't say anything. Of course Saudi supply is finite (think of the alternative, infinite?). And of course they do not want to deplete/produce any faster than they are, or they would be depleting/producing faster. The Saudis love higher oil prices because it brings them more money, so producing at their current level (as long as it meets their country's budgetary needs) is in their interest. If they have the ability to produce more and bring prices down, what good would that be for them? They don't need more revenues now, and the oil they sell at lower prices could instead be sold at today's high prices tomorrow. The idea that the Saudis don't have more oil available to sell if they wanted to is incorrect, in my opinion.