Russia's Invasion of Ukraine (Official Thread)

GnauzBookOfRhymes

GnauzBookOfRhymes

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th_412 said:
Appreciate it breh that makes alot of sense

See that shyt makes sense too....but to your point about supply, even if the price of oil is steady at 150-200 a barrel like that article suggested, you still dont believe that over time domestic production could/would ramp up to the extent we could get the price down to at least closer to 100? Or is the control that those big companies you mentioned have and the risk the Saudis and OPEC can kill their profits again as well as the push toward electric vehicles enough to make that unrealistic?
Click to expand...

Question. Why do you assume domestic producers want or would prefer prices to go down? These are publicly traded companies whose ownership have huge interest in driving up share prices, stock buybacks etc.

Producers want the highest price possible that matches demand. We are too addicted to oil. It is too important to our economy, and is used in everything from gasoline to plastics to lubricants that are used to ensure all of our machines can operate. And most companies will just pass the added costs on to consumers (luggage fees we now pay were originally instituted when oil prices went up after the iraq war). If the producers think prices will remain elevated for the foreseeable future then you'll see them bringing more production back online. But they're not going to increase production just to make gas cheaper for drivers.
 
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