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27 comments on From One of Our Insiders: Some Thoughts and Data about Prices and Exploration

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Bubba on November 2, 2005 - 9:40am Permalink | Subthread | Parent | Comments top
My own experience is that marginal projects are marginal in every sense.  Except in the unique types of cases I mentioned above, of which there are few, marginal projects don't make an impact on even a single company's bottom line or overall production level, much less the gross production of an entire country (or the world for that matter).
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wkwillis on November 3, 2005 - 1:48pm Permalink | Subthread | Parent | Comments top
Marginal projects don't much effect company profits but they do affect product prices. 1% of the oil supply determines 10% of the prices because it's the marginal 1% that sets the prices.
A good example is the oil shock of 1973 that reduced supply by 5% and increased prices by 100%. 1980 increased prices by 400% and was the result of an even smaller decrease in production.
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27 comments on From One of Our Insiders: Some Thoughts and Data about Prices and Exploration

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