How does the price of oil influence the amount produced?

Does anyone know of a website that can answer this question. I looked but was unable to find one...any help would be greatly appreciated...oh and i know it seems like an easy question but i need details...so not just...the higher the price the less oil....thats not gunna work....How does the price of oil influence the amount produced?
Try thinking of the question this way first: How does the amount of oil produced influence the price of oil? You also have to consider the supply and demand scale of oil as well. First of all, if there is a high demand for oil, companies will raise the prices. If there is a small demand companies will lower prices. Now think the resources. If a company has an excess of oil, they are more likely to lower the price of it, as opposed to a company that has a very limited resource (their price will be higher than the other company's) .





Now we have to consider the costs of producing oil and the price of oil. All companies can produce oil up to a certain point and then it becomes too expensive for them. The cost of producing oil will be larger than the profit. That's where companies begin getting out of the market and therefore less oil is produced and prices are raised because of lack of competition. Of course we also have to take into consideration that the higher the price of oil is, the less of a demand there is for it, so companies will cut back on production and raise prices to make up for the loss of buyers. Finally, consider resources in general. There are no real substitutes for oil at the moment (which makes the market inelastic) and there is a limited amount of oil in the world. Because there is no substitute for oil, we are at the mercy of oil companies and are forced to accept prices they come up with. The limited amount of oil in the world makes oil companies limit the amount they can produce at a time and prices reflect how much oil they produce at any given time (if the price is low, it is likely companies have a lot of oil at the time; if the price is high, the company has a limited amount of oil to sell).





Hope this helps you, I know economics can get complicated. Good luck :)How does the price of oil influence the amount produced?
http://www.wtrg.com/prices.htm





http://www.sciencedirect.com/science?_ob鈥?/a>