Even if the former was true, ignoring the latter would make more sense to "enhance shareholder value."
No, it wouldn't. Think it through. Getting doomy would get people to rethink their oil consumption in the long run, which in turn would reduce future oil company profits for the entire industry. The companies have seen this already; after the OPEC embargo in 1980, the US economy was burning two gallons of fuel for every dollar of GDP generated. By 1990, that consumption:production ratio had changed to 1:1. Essentially, our economy doubled in efficiency in 10 years . . . reducing oil company profits as a result.
If, instead, they blame any spike in price on this hurricane or that Middle East unrest or the other pipeline trouble, they can (and, seemingly, have) forestalled any serious questioning of why a suck economy still commands over $3/gallon.
So when they keep drilling and keep finding more oil . . . and keep flooding the market with oil. . . , we should...
. . . wonder why the price hasn't dropped to pre-2008 levels. Shouldn't such much crude affect market demand and lower prices? Weird, isn't it?
Failing to note such an obvious sign means you're "really not thinking this through."
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Date: 9/7/13 18:34 (UTC)No, it wouldn't. Think it through. Getting doomy would get people to rethink their oil consumption in the long run, which in turn would reduce future oil company profits for the entire industry. The companies have seen this already; after the OPEC embargo in 1980, the US economy was burning two gallons of fuel for every dollar of GDP generated. By 1990, that consumption:production ratio had changed to 1:1. Essentially, our economy doubled in efficiency in 10 years . . . reducing oil company profits as a result.
If, instead, they blame any spike in price on this hurricane or that Middle East unrest or the other pipeline trouble, they can (and, seemingly, have) forestalled any serious questioning of why a suck economy still commands over $3/gallon.
So when they keep drilling and keep finding more oil . . . and keep flooding the market with oil. . . , we should...
. . . wonder why the price hasn't dropped to pre-2008 levels. Shouldn't such much crude affect market demand and lower prices? Weird, isn't it?
Failing to note such an obvious sign means you're "really not thinking this through."