What is more, Saudi Arabia has 68 years of reserves at 2024’s production rate. The world will probably have stopped using hydrocarbons long before those run out. So any crude it does not pump today could be money lost forever.
I dont understand this logic. If they don’t pump it, we might not ever use it? And by reserves, I’m assuming they mean unpumped reserves?
The same reason that DeBeers doesn’t flood the market with diamonds.
OPEC has always been about manufactured scarcity. It’s not a bad scheme, if you have a heavily concentrated, limited resource. The difference, of course, is that oil is actually useful. So might as well pump it while you can, store it where it’s easy to get and ration it out.
I dont understand this logic. If they don’t pump it, we might not ever use it? And by reserves, I’m assuming they mean unpumped reserves?
I think they mean if they don’t sell it before we stop depending on oil, they won’t make any money out of the dinosaur juice in the ground.
The same reason that DeBeers doesn’t flood the market with diamonds.
OPEC has always been about manufactured scarcity. It’s not a bad scheme, if you have a heavily concentrated, limited resource. The difference, of course, is that oil is actually useful. So might as well pump it while you can, store it where it’s easy to get and ration it out.