Mike the Usurper wrote:

flynn23 wrote:

Mike the Usurper wrote:

That means the reassigned project could take months longer at a time when delays already come at a high price. With the price of oil topping $60 a barrel, the Iraqi government is losing hundreds of millions of dollars in potential revenue from the dilapidated wells.

I disagree. Assuming the project EVER starts shipping oil again, it may be just in time to start sending it out at... $120 a barrel? More?

Not likely. With that amount of production coming into supply, demand would probably not advance enough to justify a 2x price increase. Even if the delay caused the price to creep up to that level, the fact that you'd have more supply coming online (sizable!) would deflate the price a little. Unless of course, this is all being controlled by one master cartel who will stop at nothing to disrupt the world's economic system by driving the price of fossil fuel into a stratospheric range that no country could afford. =\

One word. China.

Perhaps, but I honestly believe that Chinese growth rates are not accurate. There's been many cases where the Chinese procure mass quantities of things just to let them sit around. It gives them a powerful position in negotiations. Plus they have massive oil reserves and oil fields of their own.

RE: Iraqi State Company to Repair Oil Wells