Saturday, March 19, 2022

Democratic governor warns against 'echoing Socialist Party lines' and forcing Big Oil to drill

Democratic governor warns against 'echoing Socialist Party lines' and forcing Big Oil to drill
  • Gas prices in the U.S. keep going up and up, and Washington's Democrats have found a convenient scapegoat for the pain inflicted on American drivers — Big Oil.
"...But halfway around the U.S., the Democratic governor of an important oil-producing state has a different message: Oil companies might have good reason to be wary of amping up production...
  • First, oil companies need long-term price stability. If a company moves now, it could lose out if prices drop before new oil actually starts flowing. It “could be in six months, it could be in a year,” Polis says of the lag each company has to factor in...
  • A company like Exxon (XOM) surely remembers investing over the last decade and then posting a net annual loss of $22.4 billion for 2020, the largest in its history.
  • The oil giant survived but many smaller companies failed. In a recent oil bankruptcy report, the Texas law firm Haynes and Boone documented more than 600 industry bankruptcies from 2015 through 2021...Read all.

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