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SESD Sious Falls | This is what I do not understand. If OPEC as a group or the Saudi's by themselves cut oil production a little over 600,000 barrels a day, we would get rid of the surplus oil in very little time. Price would return to the $90-$100 level.
Doing some rough math, if OPEC produces 35 million barrels per day when oil was $100 a barrel they grossed $3.5 billion a day. Now that oil is $60 a barrel that is $2.1 billion a day. OPEC is losing $1.4 billion per day.
Why wouldn't OPEC cut production a million barrels per day and oil returns to $100 a barrel. 34 million barrels times $100 a barrel equals $3.4 billion a day. OPEC would gross $100 million less per day but they would also keep 1 million barrels of oil per day that they could sell later when oil is $150 per barrel.
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Zombie Oil projects..
