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cab
Joined: 01 Nov 2004 Posts: 32429
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dpack
Joined: 02 Jul 2005 Posts: 45515 Location: yes
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Shane
Joined: 31 Oct 2005 Posts: 3467 Location: Doha. Is hot.
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Posted: Tue Mar 08, 11 4:28 am Post subject: |
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cab wrote: |
And it'll get bigger if crises develop in other middle Eastern oil producing states like, say, Saudi Arabia. |
Spot on. At the moment, global supply shortages can be mitigated against by turning up the taps elsewhere in Opec, with Saudi being by far the easiest source of an almost-instantaneous increase. If Saudi was unable to ramp up production on whim, then you'd see a real increase in the price.
Don't forget that Libya only really has oil going for it. The current crisis will be resolved, one way or the other, and production will stabilise, so the longer-term effect on the oil price will be insignificant. The markets will also be factoring in that if Gadaffi is deposed it will become easier to access the Libyan oil as sanctions are likely to be lifted (depending on who takes over, of course, but the international community will make efforts to get the new rulers onside).
On a secondary note, it's going to be interesting to see what happens in a few decades when countries that have got stupidly rich off the back of oil have to come to terms with their only exportable asset running out. |
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Treacodactyl Downsizer Moderator
Joined: 28 Oct 2004 Posts: 25795 Location: Jumping on the bandwagon of opportunism
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cab
Joined: 01 Nov 2004 Posts: 32429
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cab
Joined: 01 Nov 2004 Posts: 32429
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Shane
Joined: 31 Oct 2005 Posts: 3467 Location: Doha. Is hot.
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Treacodactyl Downsizer Moderator
Joined: 28 Oct 2004 Posts: 25795 Location: Jumping on the bandwagon of opportunism
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Nick
Joined: 02 Nov 2004 Posts: 34535 Location: Hereford
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Posted: Tue Mar 08, 11 9:07 am Post subject: |
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The Government (any flavour, any colour) won't do a lot, because it's political suicide to do so. The whole system has a major flaw, like any other system. What we need is a bunch of despotic, power crazed dictators, running the army, who can't be got rid of, to make long term, unpopular policies for our own good, who bleed green.
Not likely to happen, really. I'm afraid I'm with dpack; and enjoy it while you can. |
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cab
Joined: 01 Nov 2004 Posts: 32429
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cab
Joined: 01 Nov 2004 Posts: 32429
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Nick
Joined: 02 Nov 2004 Posts: 34535 Location: Hereford
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cab
Joined: 01 Nov 2004 Posts: 32429
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Behemoth
Joined: 01 Dec 2004 Posts: 19023 Location: Leeds
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Nick
Joined: 02 Nov 2004 Posts: 34535 Location: Hereford
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