Robovski
Well-known member
Biden says the oil companies do not want to pump more oil in the USm and want to just use the oil money to buy back stock.
Not sure if he's full of shit on this, but from what I know of the oil and gas industry...unfortunately plausible.
Edit: Copied wrong tweet initially.
Let's say you have an existing already being exploited domestic oilfield. You are already getting petroleum from the ground by the barrel and have infrastructure and logistic support for your expected output and this will be for years to come at this level. You could take some profit to increase output now but this would be at the cost of the long term supply from this field - there is only so much oil in the wells. Additionally, the more you draw out the more you have to put in to get what is left out if the overpressure has been relieved. Combine with the fact that oil prices are up and going to keep on going up (probably because this is a finite resource) and you have shareholders who want safe returns AND a currency in rapid devaluation/inflation and it's better to keep that oil in the ground for 20 years until they expected to take it out.