Originally
posted by
joedro:
I'm pretty sure the point of me putting this idea here was to strengthen oilers not weaken them. But then again I don't know why adding oil tech would strengthen oilers by adding production. Does that even make any sense Rockman? Adding production strengthening oilers?
Simple supply and demand. Increasing production without increasing demand will weaken them, not strengthen them.
If right now we need 3 oilers out of every 100 countries to satisfy oil demands, a 50% increase in production would now mean that only 2 countries out of every 100 would need to be oilers. The excess oil on the market would drive prices down farther than the increase in production would make up for it. The result of adding oil tech is that oiler would need to become a strategy that is played even less often than it is played right now.
Now, if you cut oil production by 75%, and then added an oil tech with maybe a 200% max, then oilers would be strengthened. But the way to strengthen oilers is to decrease production. OPEC realizes this quite well in real life :-)