The windfall taxes are mere threats during a campaign season. Exxon also has the Exxon Valdez case hanging fire, a few more $ billion, that is reality. It is not easy or cheap to ramp up production anymore unless they find another elephant such as East Texas or Prudhoe. Even Saudi can’t increase production by much. This is peak oil. Maybe they will find some more elephants, but it has been quite a while.
And mean while China drills for oil for the Cubans off the Florida coast.
Why Exxon Won't Produce MoreWhy?
ML/NJ
Peak Oil! Peak Oil!
[These include the 600 million barrel Kizomba C development off the coast of Angola years. ]
“years”??? What does this mean?
Exxon has every incentive to increase production. Every oil company in the world is trying to capitalize on these prices to find and sell as much as they can.
But, America severely limits their ability to do so, and crackpot leaders like Hugo Chavez are doing everything they can to discourage further investment in known oil basins.
But there is a more subtle reason why it's hard for Exxon or any large oil company to report great reserve additions. It's easy for a new or small oil company to double their reserves within five years because they started from a small baseline.
But a supermajor faces an impossible task in doing that. They'd have to discover and own every barrel on the planet and then start finding oil on other planets to keep doubling their reserves. It's just not possible.
Their gas around here is always 15 to 20 cents higher than all other name brands also. I have not purchased any Exxon gas in years because it is always higher everywhere we went.
ExxonMobil actually buys more oil than they produce.
They refine more than twice their production.
The price won't come down unless the public starts conserving, but Americans are too much in love with their cars. They'll jump in the car for a pack of cigarettes.
Planning the use of the car for shopping, etc. is a pain, but it works. I've cut down my driving jaunts and I'm saving a bunch of money.
Those who have to use their cars for work have a difficult time....but saving on evening and weekend driving is quite possible.
If I'm a baker and sell my bread for $1.00 a loaf and then raise the cost to $3.00 and my customers shake their fists at me but still pay the three bucks, why should I ever go back to the 1 buck price? Just to be a good guy?
On the other hand, if my customers cut back on bread eating and my business slacks off, you better believe I'd drop the price back down in a heartbeat.
Why scream at everyone who are the usual suspects in high fuel prices when something CAN be done about it with some individual effort. Not talking about that nasty word "sacrifice", just cutting back.
Leni
But they care about the planet, you see. Bunk.
Why is that?
for later reading....
we need to buy more oil from mexico enriching that industry so they employ more of their own and deny monies to the musslimes... driving the cost down...
solves so many problems.
t
The nations first new oil refinery in decades may be built in Elk Point, South Dakota. A county referendum on June 3rd will decide if the $20 billion dollar project goes forward. While there are the usual assortment of kooks and tree huggers in opposition, I expect the good people of this state will give a go ahead.