4 ms·
The reserve won't get bigger but last longer. Small but important difference.
by numlock86 7y ago
The reserve won't get bigger but last longer. Small but important difference.
- thaumasiotes 7y agoNo, the reserve is measured by volume, and when the oil price goes up, the physical volume of the reserves increases. The reserve very literally gets bigger. I said this already -- the volume of the reserve is not related to the amount of oil in the ground. It's the amount of oil that can be _profitably_ extracted _at current market prices_. If the price increases, so does the reserve. Similarly, if the oil price falls, the oil reserve shrinks, despite the amount of oil in the ground being the same.