Jim5522 Wrote:
Jun 03, 2012 8:56 AM
So explain something to me John, the central tenet of capitalism is to undercut your competition and dominate the market. In the ME to produce a barrel of oil it costs about $3/bbl while in the North Sea or Alaska the cost is about $25/bbl rising to nearly $70/bbl for the tar sands in Canada. Yet the ME resists the urge to undercut the market by flooding it with cheap oil and driving out the competition as they did in the 80's when they made the shale oil boom in Colorado go bust. Why isn't a gallon of gas still a $1 making the idea of drill baby drill, theoretically prohibitive, since it costs 10-25 times more to even get it out of the ground? Could there be other factors ... such as collusion?