by Drax » Fri Jul 10, 2020 4:24 am
Finance Minister Sabriiqa Soqnan, Jumhuriat al-Badara:
Producing a lot more oil has produced the expected decrease in Terran oil prices. This has an effect on the economies of oil producers. The government of Jumhuriat al-Badara has proceeded with caution so discharging our governmental responsibilities is not threatened at this time but on balance there is less revenue flowing into our nation because of the reduction in the price of oil. An example is more oil production will be required to reach the oil worth 50 billion LOD at market price than it apparently looked like at the time we made the deal with Yingdala.
One way to deal with this is just wait and hope things will get better. They may. Wars and rumours of wars could drive prices back up.
Another way is to try like APPS to set the price of oil.
Another way and what we hope will be considered by the MEA is to reduce production in a coordinated manner. There are others who have much more experience than Jumhuriat al-Badara at guessing the effect of a certain amount of reduction. Our suggestion is we should reduce production by 5%, note the effect of the reduction on price, and then move to another % to get us where we want to go.
If another nation is already familiar with data on the effects of reduction on price this two step process may not be necessary. Should the MEA favor this idea, it would certainly be helpful to approach the two other largest producers about joining with the MEA in this project. Further, it may well be that only the largest producers in the MEA would need to make the reduction.
We are not formally proposing this at this time but are asking if other MEA members think this is a course we should pursue.
Neue Dundorfische Zentrumspartei (NDZP), Dundorf, Active
Deltarianska Narodna Strana (DNS), Deltaria, Active
Dedicated to the proposition.