Too much oil lowers prices and burns up profitability, even though it might make consumers happy. American shale firms are already pumping historic amounts of oil. And there’s a supply glut in the global market.
“As crude prices come down, we expect the industry revenues to go down and profits to go down,” ExxonMobile CEO Darren Woods told CNBC last week.
Too much oil lowers prices and burns up profitability, even though it might make consumers happy. American shale firms are already pumping historic amounts of oil. And there’s a supply glut in the global market.
Exactly, and I’m betting that glut is a result of one of two factors (or a combination of the two): either oil producers thought there would be a higher demand than there actually is and/or they were incentivized to over produce, probably through government subsidies, of one kind or another.
Exactly, and I’m betting that glut is a result of one of two factors (or a combination of the two): either oil producers thought there would be a higher demand than there actually is and/or they were incentivized to over produce, probably through government subsidies, of one kind or another.