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Originally Posted by niterydr
Well whats sweet, is when we are all driving 50mpg commuter cars, the oil suppliers will just slash production so they can maintain the $60/barrel price.
"They" don't care how much they sell, just how much they get for it.
I highly doubt it will get to a point to where there is a 'stockpile' unless the US steps in and throws some of its oil on the market. We'll all just have to suck it up and get use to it.
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That isn't true. They are trying to maximize profits. Stats class is your friend
They want to keep production at a point where they will get a high profit/barrel yet still sell a large quantity. This will yield a large profit. The thing is that they can't get too greedy or it will be more enticing to move to alternative energy sources. They are walking a fine line and OPEC has said that they want to keep oil prices below $60. They must feel that is the breaking point where people will get pissed.
Alternative energy is coming and them bumping up the prices is going to force the issue. Once other energy sources come into the main stream, they are going to watch their countries go down the crapper!