Thanks for going to the trouble to build this.
Ohâ€¦ are those profits? Thanks. We will take those.
Recession caused drops in demand caused oil prices to fall to $55/gallon today:
"It’s quite a fall," he said. "To be honest, I think we can go below $50. I think there is outside chance we can see $40."
Oh goodie! Cheap[er] gas again. I can now afford to drive places where tax increases await my arrival.
The problem, however, is that at that price oil companies donâ€™t want to invest in finding more oil. And if they donâ€™t find more oil the price will skyrocket again when the economy comes back:
The agency warned on Wednesday that more than a trillion dollars in annual investments to find new fossil fuels will be needed for the next two decades to avoid an energy crisis that could choke the global economy.
But goshâ€¦ if I were an oil company, why would I invest profits when the rewards for investment are higher taxes on the return? The right use for oil company profits is to get them to shareholders _before_ tax increases. Higher taxes reduce return on investment. Reduced return on investments meansâ€¦. reduced investment. Duh!