Encore,
"and if the price of oil drops
what then?"
OPEC have just ruled out any production increases till 2009. Know why? Two words - PEAK OIL. Or if you like, another two words - THEY CAN'T.
If we're not there yet then damn we are close. Google "Gwahar" and "peak oil" and see what you come up with.
When the world's largest oil field is resorting to salt water injection the price of oil sure ain't coming down any time soon.
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