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Politics : View from the Center and Left

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To: Cogito who wrote (72230)	6/14/2008 5:59:09 PM
From: quehubo	Read Replies (1) of 542088

Oil companies dont set oil prices. The USA oil companies are only minor marginal players in the global market. They are making much money now and they are investing it back as fast as they can. The charts I linked show there is a response in worldwide drilling activity to oil prices. The reasons oil companies want more leases are likely quite varied. But they choose the most profitable ones first. So if you want them to perform more activity in the USA they must be motivated. From the charts I sent you can see other governments are getting the oil revenues as they increase drilling. All these oil companies are acting to make as much money as possible. There are many companies increasing production. It could be that some leases are held and discovered not to be worthy until say oil hits $75. Well now these areas are profitable if you believe oil will stay above $75. From the media releases you can confirm that most all of these individual oil companies where never believing oil would hold over say $75.

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