Will oil companies really drill more to raise production and lower profits?

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Quimby

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I keep hearing the "drill more" political buzz. Why would an oil company want to do that? They are trying to maximize profits, which they are bound by securities law to do. Why would they want to drop oil prices. It seems more like they would want to lock up future oil rights instead. I think we are being scammed.
Drilling more will bring more money to the oil companies (gross), but the profit margins will drop, meaning the will not profit as much. Econ 101
 
WA HA HA HA HA they are not going to lower their profits are you kidding me they are a bunch of bastards trying to make as much money out of the little guys as they can because in this day and age gas is a necessity and they know that and we know that and that's how they can jack prices like they do
 
They probably will not because they know their end is near. As soon as the Japanese can think of a new means of propelling a car, they will be out of buisness.
 
Drilling more will not lower oil prices any time soon, if at all. It takes an estimated 10 years for oil fields to be developed.

Never the less, what producing more oil from drilling WILL do is bring more money into the pockets of the oil companies and consequently their stock holders and investors. In addition, it will bring more money to the US government since they will tax all of this oil production.

Right now, the oil companies only make about 12% on a gallon of gas. That may be billions of dollars, but a hella lot more goes to the countries in the Middle East who actually drill for the stuff. 60% of the cost of a gallon of gas goes to those countries to pay for the oil (that gasoline comes from). So, the more gas and oil we use, the more money we give to the Arabs and the weaker the dollar becomes. But, if the oil companies are producing it domestically, more money will stay in the country. This means it will help strengthen the dollar, lower the trade deficit and help the economy as a whole.

So, to sum up, it won't affect gas prices much, but it will help to shore up our economy rather than mortgaging our future over a tank of gas.
 
I dont think it will change it will probably change when about 5 or more years come by and go however it wont still make a difference fossil fuels are very limited for our future so it best to conserve so that we may find other alternate solution to make a new source of energy.
 
I hope they drill more. Drill the oceans, Anwar, my backyard! I have no problem with them doing it.
 
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