Source:
Reuters WTI April 1999-Aug 2004; EIA Calculations
SThis chart shows the relationship between
crude oil prices and surplus production capacity since 1999, or about the
time we saw the shift in prices up to around $30 per barrel.
SNotice that price rises almost $10/barrel as
surplus capacity drops from about 2 MMB/D to where we are today at about 0.5
MMB/D.
