I don't understand the incentive for Oil Companies to increase production, can't

May 23, 2022
3:31:54pm

Windward_Coug All-American

they make more money by producing the same (or less) and letting the price skyrocket? What is their motivation to invest in increasing production?

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Windward_Coug

Previous username: Eldoradocoug
Bio page: Windward_Coug
Joined: Feb 8, 2011
Last login: May 16, 2024
Total posts: 10,092 (26 FO)

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Messages

Author

Time

5th largest US (13th overall) refinery producing 500k daily barrels went down

Zak

5/23/22 3:13pm

Link?

CommodoreCoug

5/23/22 3:19pm

I can't find one. I doubt OP is correct.

JuicyJam

5/23/22 3:50pm

Biden mole?

TNT

5/23/22 3:19pm

Get rid of policies that restrict refineries already.

kotacoug

5/23/22 3:19pm

Board logo checks out

RH84025

5/23/22 3:25pm

It’s alright; it’s a transition: take one for the planet

2FarGone

5/23/22 3:26pm

Meh. Get back to me when it’s at least in the top 3

pink22

5/23/22 3:26pm

I don't understand the incentive for Oil Companies to increase production, can't

Windward_Coug

5/23/22 3:31pm

The incentive is that now it's more cost effective to explore alternative fuel sources.

Turnpike Lane

5/23/22 3:33pm

That would suggest collusion among all the companies. Right now is a good time

Taccoug

5/23/22 3:42pm

Isn't that why OPEC exists... so they don't compete with each other?

Millhouse

5/23/22 3:56pm

Plenty of countries are not part of OPEC but they can control some pricing

Taccoug

5/23/22 4:10pm

Yeah that doesn't work legally. They are trying to refine as much as they can.

JuicyJam

5/23/22 3:51pm

This is exactly why game theory exists

WDaddy

5/23/22 4:00pm

That’s why you collude to not produce more. And then secretly do it anyways

DiamondMo

5/23/22 4:10pm

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