Quote:
Originally posted by bilmore
A. Interesting note, that many petrologists are giving serious credence to the thesis that the Saudis have far smaller reserves than we think. They may no longer have the ability to throttle down the price by seriously bumping production.
B. You do realize that this was all tongue in cheek, right? I just figured that, if we're all dumb enough to take seriously politicians whose response to rising gasoline prices is "let's send them a $100 check", then this would also count as serious discourse.
|
A. Yes, I'm aware of that. Saudi has been incredibly secretive about its reserves so it's all guesswork. But there is certainly cause for concern about the accuracy of their statements.
Reserves and production capacity are not really the same thing, though. Even if Saudi reserves are as high as they claim, they are producing at close to full capacity right now, because of the surge in demand over the past couple of years. So their ability to cut prices is pretty low right now.
B. I don't take the "C-Note for everyone" pander as serious energy policy and didn't think you did either. I thought you were talking more generally. Next time add some emoticons as a helpful guide?
