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Why does it matter what their potential production capacity is? That sounds like asking how many money printing machines they have; it seems they could build as
by stefan_ 7y ago
Why does it matter what their potential production capacity is? That sounds like asking how many money printing machines they have; it seems they could build as many of those as they want, but of course you only do that according to market needs.
And of course oil reserves have had the unfortunate tendency to significantly increase whenever the oil price is high.
- gruez 7y ago>Why does it matter what their potential production capacity is? Because they're planning to IPO? Surely if Aramco had double the production capacity, it would be worth more to investors because it would be better equipped to handle disruptions.
- throwaway2048 7y agoThink of oil in the ground like a sponge, after a certain point it doesn't matter how many wells you have to extract it, its only going to "leak out" at a certain rate that can not be raised. It isn't necessarily trivial to raise production.
- la_barba 7y agoCapacity is the currency of the industry they're in. Its right in the article itself. >What Saudi is trying to do by not revealing the true picture is to protect its reputation as a reliable oil supplier, especially to its target clientele in Asia, so we have to take all of these comments with a hefty pinch of salt,