All else equal, when oil prices increase, oil exploration processes like horizontal drilling become more advantageous for oil companies, and this will ________ proven reserves of oil and ________ the number of years it will take to deplete the stock of oil.

Question

Quizplus · Accepted Answer

When oil prices increase, oil exploration processes like horizontal drilling become more economically viable, leading to an increase in proven reserves as previously uneconomical deposits become profitable to extract. Additionally, the increase in proven reserves extends the number of years it will take to deplete the stock of oil, as there is now more oil available to be used.

All Else Equal, When Oil Prices Increase, Oil Exploration Processes