If gas companies are making record profits by not drilling, what incentive do they have to drill in ANWR?

or anywhere else? If they drill, that will increase supply and drive prices down. I wouldn’t drill either if I were an oil company. I’d just keep raking in the profits that keep increasing and increasing as demand rises.

5 Responses to “If gas companies are making record profits by not drilling, what incentive do they have to drill in ANWR?”

  1. Troy B Says:

    Oh, that’s easy. They’ll export it along w/ most of our oil.

  2. Annick J Says:

    The oil in ANWR won’t be enough to offset global demand, but it WILL add billions of dollars to the coffers of oil companies.

  3. Thomas SR Says:

    Domestic oil sources will equal even larger profits for them. Companies (regardless of type or business sector) are in business to make profits. It’s called capitalism. You may have heard of it before.

  4. Puller58 Says:

    We could just open it up to wildcatters like we had in the old days. If you want to get rich, get a rig and start drilling.

  5. Baz Says:

    ANWR alone isn’t enough. Oil exploration can only continue with oil company profits. If we don’t expand oil exploration, revert to policies like the WPT policy of Jimmy Carter, we lower profits and the ability for expanding exploration depletes and our dependance on foriegn oil increases.

    Also, oil company’s "record profits" are in top line revenue w/out the consideration of Cost of Goods Sold. Profit margin for oil companies is still well below other major industry profit margins. Demand for petroleum based products (primarily fuel) is also at an all time high with lower domestic supply.

    I believe in the free market and that "neccesity is the mother of all invention". Allow supply and demand to run its course and it will all even out eventually. There will be cultural adaptions and a need for (and ability to profit from) alternative energy sources that will be developed and commercialized. All of which will have a play in reducing energy costs.