Originally Posted by
KenV
One last point: Here in the States the concept of "drill here, drill now" as a means to reduce oil prices and reduce our oil dependency was laughed to derision by the left. I just paid $2 per gallon for gasoline. Looks like all the oil coming on line is doing exactly what our leftists said never would or could happen.
Yes, but the relative "glut" in the current global market will eventually be consumed as some production stalls/is unprofitable until the price per barrel goes back up a bit.
That the Saudis have recently chosen to not cut production meets two of their needs: their revenue keeps coming in, and their marginally profitable competitors are put in a tougher position, cash flow wise, in the short to mid term. The oil business remains competitive.