In the past, they maintained a large buffer of spare capacity that allowed them to boost output quickly to cool prices.

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In March Saudi Arabia, keen to maintain a buffer of spare capacity, said that it planned to increase its rig count by 30% by some point next year.

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When a crash occurs, governments will not have the fiscal capacity to buffer the crisis due to their already stretched borrowing levels.

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Looking forward, if these companies grow beyond their current capacity, their margins will give them the necessary buffer to add employees.

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