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e"war profiteering," taking aim at businesses' record profits as households grapple with soaring inflation. One of the dumbest political soundbites was President Obama saying, about a bridge, “You didn’t build that.” His basic argument was sound: government not business provides public goods like infrastructure.
Politicians—like most of the population—generally have no sense of economics, let alone business, and frequently take steps that are economically irrational because they don’t perceive the costs being inflicted on companies. Most egregiously, setting regulations and then canceling them means that companies are forced to make investments to satisfy them, and then write them off as losses.
But also, if governments take steps that interfere with project developments, the delays add to costs but again, in a manner that isn’t very transparent. A company that buys a lease in the Gulf of Mexico and then finds drilling or development delayed because of a government interdiction is bearing a significant cost—the interest payments on the money spent for an idle project. And if production is postponed, the net present value of the investment drops, sometimes significantly.
In the figure below, I compare the discounted present value of an income stream from a stereotypical shale oil well . In the first case, the well is drilled and brought on line in a couple of years and then production and revenue start and decline abruptly, as is typical for such wells.
Biden doesn't know what he's saying. The far left tell him what to do and write every speech for him. He's so incompetent and American people don't do anything. We are so stupid!
Unknowingly?! Ha!
It is now clear that Forbes cares only for the well-being of billionaires and the oil industry, not the other 7,999,999,000 humans or Planet Earth. Unfollowed.
“Unknowingly.”
The Oil Industry is a Dead End Business. It's supplies are limited, there is no future planning for the damage they cause, forcing the costs upon tax payers around the globe. Dinosaurs are not returning. The Oil Industry needs to adjust to reality.
Unknowingly........... you just went full blown fake news..... you just ran an obvious spin story trying to downplay the corruption and incompetence of our PuppetInChief. Damage control doesn't look good..... especially if it's outta control.
You have to revert to Bidens comment during his debate with Trump,' I'll break the oil industry', (he must have a personal hatred for them}, perhaps no payola in the Obummer years !
KwazaUnathi 'Unknowingly' 😂
Amerika bohóca
Politicians Unknowingly And that’s the headline? Have you been hiding under a rock for the last 2 years?
that’s great 👌 we don’t need oil.
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