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99 comments on EIA reports on April

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Khebab on July 3, 2006 - 11:55am

Using 1982 as a base year:

The circled points are projections for 2006

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WebHubbleTelescope on July 3, 2006 - 9:02pm

Are you saying that the number of oil rigs governs the price of gas? Or that the number of oil rigs tracks the scarcity of oil, which then pushes the price?

Otherwise, at least it appears to be a good first-order predictor of price.

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Khebab on July 3, 2006 - 9:22pm

Are you saying that the number of oil rigs governs the price of gas? Or that the number of oil rigs tracks the scarcity of oil, which then pushes the price?

in case of Saudi Arabia, prices and rig counts are correlated but I believe it's a coincidence. Your second interpretation is probably the most probable.

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WebHubbleTelescope on July 3, 2006 - 11:52pm

Khebab,
I think you found a winner of a graph there. The relationship is jaw-dropping IMO.

If the number of stripper wells in the USA could be plotted over time we might see the same thing, especially recently.

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