kaz
Diamond Member
- Dec 1, 2010
- 78,025
- 22,327
It is if you have oil extraction interest...Oil companies need a little higher oil price to survive....
Making sense isn't your bag
You fundamentally don't understand economics:
1) You don't grasp that companies adapt. The models predicting their demise based on oil prices don't realize how good companies are adapting and also that the reason prices have dropped is production is now cheaper meaning the old price models have also come down
2) If oil prices dropped too low, the weakest will die and the stronger will replace them reducing the overproduction
3) Oil prices can't go long term below production costs, it's impossible, companies would stop producing and oil would rise.
They really should teach econ 101 in high schools, you would have learned about supply and demand literally the first month of your first econ course