Record profits seem to indicate that Chevron could lower prices and still stay in business
If the board and the stockholders say so, then yes. No one else should have any say.
“... seem to indicate ...”
That reads like weasel words. Maybe your claim works in theory?
Do they need to keep their shareholders happy?
Is shareholder satisfaction reflected in the stock price?
Do the pay-for-performance criteria reward key employees for the company to be profitable; or for the stock price to be high?
In a dynamic (ever-changing) marketplace it is not easy to make a profit. These companies don’t just run themselves; they need to grow to survive.
I don’t know what kind of economic model you recommend. Feel free to share it with us FReepers.
“Record profits seem to indicate that Chevron could lower prices and still stay in business”
If you mean the petroleum business, maybe. When the prices of bread and milk continue to grow, their employees have to eat too. The inflation rate for everyone is astronomical, to include them.
Major companies are not just that company even though they are investing in themselves. In 2021, Chevron launched CNE to accelerate lower carbon business opportunities in CCUS, hydrogen, renewable fuels and products, offsets, and emerging technologies. Chevron plans to invest $10 billion in lower carbon projects through 2028 and remains committed to collaborating in new ways to accelerate progress for businesses so the savings can be passed. Chevron has been investing in hydrogen research and development for decades and holds more than 75 patents from early commercial ventures that are applicable to the US future development plans. Chevron has investments all over the world to stay with the competition which now also includes the US governments. Investment and expanding is just how business works in the US. If Chevron gets too high, people can and will take their business elsewhere. I can remember when bread was a nickel a loaf. Not nowadays.
And surprisingly the way this article is written going after Chevron, there are four petroleum companies ahead of Chevron in revenue with three ahead in profit last year. The four are Exxon Mobile, Shell, Total Energies, and BP. In profit, Exxon, Shell, and Total Energies. I guess it was Chevron’s turn or some congressperson had stock in others and didn’t want the market to speculate down.
wy69