Originally posted by Rolex
"Production stops when the cost to produce is equal to, or greater than, the price."
How long ago were the wells capped I wonder? Because oil is now $50 or higher a barrel, and OPEC apparently said $80/bbl is not impossible. Seems to me that should change the economics of whether or not to uncap some of these wells.
Here are some interesting tidbits from TR Reed's book "United States of Europe" regarding the economic strength of the European Union starting to overshadow the US. These are the percentages of power generation not related to fossil fuels:
France - 70% nuclear
Denmark - 40% wind
Norway - 90% hydroelectric (and Norway is an oil producer!)
In addition, the European states have priced expensive oil into their economies for many years with high taxation. By manipulating the tax rates, they can negate or minimize the effect of price shocks on the oil market, whereas the US economy gets hit with the effects of price jumps very rapidly (I know we've all seen that at the gas pump).