Oil company profits and the ‘invisible hand’ of the market

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Opinion: Oil company profits and the ‘invisible hand’ of the market

Even the Wall Street Journal is getting into the act with headlines like “Chevron Rides High Oil Prices to Record $35.5 Billion Annual Profit” .

Not surprisingly, in light of the disastrous market conditions for oil companies that year, oil companies turned off the spigot. It doesn’t make much sense to drill for oil when prices turn zero to negative. From a low of 9.9 million barrels of crude oil production in the U.S. in February 2021, oil companies revved up production to 12.3 million barrels in the last reporting period of November 2022. That’s an increase of almost 25% in about a year and a half.

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