Quote:
Originally Posted by Levin
Because it won't come on line for years and the quantity of oil it will produce by comparison to the market is miniscule.
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Bull.
First, the potential amount of oil brought to market is not exactly known, but it is not miniscule.
Second, years from now we will STILL need oil. The "it won't be here for years" is one of the dumber arguments in this debate. It's like a 35-year-old saying, "Why should I save for retirement? I'm still working!"
Third, oil prices are sensitive to perception. It's not strictly supply/demand but also the
perception of supply/demand. Some analysts believe that the two-day drop in oil we just saw may be related to the (relatively) meaningless revocation of the executive order banning off-shore drilling.
There is no good reason not to go full bore ahead in getting this oil production ramped up.