I guess this is really for anyone out there who still wonders whether we are running out of oil. Saudi Arabia has now rejected Bush's request to amp up oil production 3 times (well on the levels that he has requested anyway) and now it looks like the US is going to help the Saudis build a nuclear power program.
So riddle me this Batman, if oil prices are through the roof, and there is enough of it to bathe in and no end in sight, why not amp up production and cash in a bit? Furthermore, if you've got more oil than you can imagine, why the move to Nuclear?
Unreal.
Live Sustainably
Dave
1 comment:
Saudi doesn't want to ramp up production because if they do, prices will drop and they may end up making less profit (supply and demand economics). The higher the demand and the less the supply, the more people are willing to pay for each unit.
This is the same reason why diamonds are expensive. Diamonds are actually plentiful in the world. However, De Boer's buys up the world's supply and only releases a limited quantity into the marketplace. In reality, diamonds are worth pennies to the dollar. However, due to the scarce supply and high demand, prices are extremely high.
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