Look at the recent price drop in petroleum around the world. ExxonMobil has nothing to do with this, and in fact, the low prices are hurting them. Revenues are dropping, investments are dropping and their stock price is dropping. Is anyone saying ExxonMobil is responsible for the low prices? Or si the blame being put on Saudi Arabia, whose National Oil Company, Saudi Aramco, has the largest reserves in the world, and who isn't cutting production?
People being people, ExxonMobil will again be vilified when prices do increase and their profits follow. No one will blame Saudi Aramco, and our profound, collective ignorance of the true dynamics of the petroleum industry will continue.
1 comment:
I wonder if Saudi Aramco is keeping production high as a way to provide indirect economic sanctions on other countries that support terrorist and on organizations that have control of some oil production capacity. If oil is not worth much then there is not a lot of money to be made off of it on back channel sales.
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