Today, 10:33 AM
Superfreak
The Almighty Join Date: Dec 2006
Location: Denver, CO
Posts: 9,064
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Quote:
Originally Posted by Topspin
Freak if gas production is increased and demand goes up as well you know dam well it's having downward pressure on price. If you had big increases in demand and no supply increase you get huge price spikes. "
It is having downward pressure in the sense that it will help maintain current pricing, but not in the sense that it will drive prices down from current levels.
If demand increases continue at their current pace, even if we bring ANWAR on line as well as some significant production from the Gulf... the best we can do is offset the demand increases. It all depends on how much each are increasing. I am making the assumption that demand in China and India continues at a higher pace than new supply. Especially given the time lag for getting sites like ANWAR on line.
If you have big increases in demand and corresponding increases in supply... price stays the same toppy. IF demand continues to outpace supply, price keeps going up. It is highly unlikely that new supply outpaces demand increases."
Read the above toppy, then compare that to your original position that prices would drop further than the two cents. The only one that changed positions toppy is you.