Shillofnoone t1_j8cds8l wrote
What is wrong with these news outlets, isn't that good. Less oil mean less pollution and these news outlets constantly post about shell and BP profits all the time .
Moranic t1_j8co1ha wrote
In isolation it's good, but they're worried it's caused by inflation reducing demand, not greener policies. People can't afford oil so demand drops.
People being unable to afford stuff is generally a bad thing.
Phiarmage t1_j8cu5n4 wrote
Yep, and record profits suggest it wasn't inflation.
pzerr t1_j8f3h2z wrote
Record profits are due to lower investment in production resulting in scarcity. Particularly when you factor in Russia whom we showed to become an energy giant. There were large losses in past years that rather negate record profits overall.
fwubglubbel t1_j8cw756 wrote
?????
Phiarmage t1_j8czqry wrote
Tl;Dr: Record profits appear unproportional and exploitative in regard to recent inflation.
Record profits within the oil industry and the subsequent drop in prices after quarterly SEC filings were published suggest that the original record price increases were not inflation. More than likely the majors took advantage of several aspects in the world economy during the last 3.5 years.
Increases in profits were not proportional to inflation. Hell, even supply and demand curves, in conjunction with rig count statistics, suggest production rose with demand until 2022, at which point companies slowed new drilling on already obtained permits (federal and state).
FaggiusBile_ t1_j8d5utr wrote
And why didn’t they drill? Because they have shell shock from 2014, oil companies aren’t reinvesting their profits in new wells.
Source petroleum engineer for the feds
faman00 t1_j8g3bal wrote
> People being unable to afford stuff is generally a bad thing.
I agree, but markets adjust to lower demand by lowering prices to move product.
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