by Leanan » Fri 18 Nov 2005, 14:43:33
$this->bbcode_second_pass_quote('', 'G')iven market conditions (high demand, high prices, etc.), don't you think that oil will be produced as fast as possible everywhere?
No, actually, I don't. The classic example: Iran. They don't want to invest in the high-tech equipment needed to increase their production. They see it as a waste of money. Why borrow money or let foreigners own part of your resources, just to produce them faster? Doing it the slower, old-fashioned way means they'll still have oil to sell later, probably for even more money. They don't look at it the way a corporation would. They see it as saving part of a valuable and nonrenewing resource for their children.
IMO, the only thing that would force countries like Iran to produce faster would be lower prices (because they need a certain amount of money to keep their economies running). Well, that and the threat of "regime change."