Even if the oil companies began drilling more wells, what would motivate them to put more oil on the market?

Question

They have no reason to want lower prices.

Answer 1

"They have no reason to want lower prices."

Um,  economies of scale resulting in lower costs, and competition will tend to drive down prices.

p.s.  crack open a book once in a while.

Answer 2

No reason.

Oil companies routinely purchase viable well-heads and smaller companies with viable oil to artificially limit supply.

Oil companies routinely purchase refineries and close them down or run them at well below average production to also artificially effect supply and hence create greater demand.

OPEC and the oil cartels are s******g us big time again.

Oil is exactly like diamonds and de Beers. They are plentiful and easily obtainable in high quality and quantity- and its' supply is restricted by a vested interest few who act only for their interests alone.

Answer 3

They make 8-10 cents on each gallon no matter what price they sell for

Answer 4

Actually, yes they do have a reason.  High prices cause us to look harder for other options.  Efficiency is not in the long term best interest of oil producing nations.  The increased drilling would not put more oil on the market, it would give us the capicity to produce more if needed.  The fear is that one bad storm or terrorist act could cause a fall in our production and then there would be a shortage.  That is why prices are high now, its fear not an actual shortage of supply.

Answer 5

Very true we can not drill our way out of this prblm we are dogs on a leash to the oil companies but ppl continue to pay the price and jsut complain in london they are payin13 dollors a gallon right now i pay about 4.30 at 5.00 i quit iwill not pay anymore and i will retie my car think about it everyone else should to if you have 20 gallon tank and it use to casot you 2 dollors a gallon that was 40 dollors at3  dolllors a gallon its now 60 dollars at 4 dollors a gallon its now 80 dolloras at 5 dollars a gallon its now 100 dollars to fill up and every one cant afford to run out and get a fuel efficent cars and that wont help oil companies dont work with supply and demand if every one had a fuel efficent car then they would jack the prices up so that when you do fill up they still make the same profit and just relay it to theres not enough supply  fact is ppl have to stop driving and take a bike or something else there are many solutions the only one to get fuel prices down is to stop driving not conserve stop if you can its as simple as that and i have countless other ideas that are valid for how to get them lowered and why oil companies have no motivation to lower the price

Answer 6

You can't force them to put more oil on the market any more than you can force them to drill in the leases that they already have.