Quote:
Originally Posted by 450slcguy
With the profits SA is making they have plenty of money to add to the drilling/pumping infrastructure. They just have to want too. Oil 3 years ago was what, $40 a barrel?
|
http://en.wikipedia.org/wiki/Price_of_petroleum
This trend continued into early August 2005, as NYMEX crude oil futures contracts surged past $65 as consumers kept up the demand for gasoline despite its high price. Crude oil futures peaked at a close of over $77 in July 2006
Note, the USD was a lot stronger then as opposed to now.
In raw dollar terms, yes they are getting more but do you think it might not be as much when it filters down?
But lets say you are right and they do just that. The next question is whether they have the capacity to pump enough to lower the oil price that much.