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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.
Joe knew he hurt oil
Just look back to his comment during the Presidential debates; 'I'm going to break the oil industry'. Is this a personal vendetta ? Joe Biden's personal hatred.
Oh they knew, they just didn’t care! Theres a difference!
The problem is U.S. thinks they own the world, but that’s not true
Unknowingly? What a crock! Should say “intentionally”!
That's cuz he and Hunter have a huge stake in cobalt and lithium. Love our corrupt politicians who are looking out for themselves.
Pull all subsidies.
You know for being a news source, Forbes sure has as much memory as the big guy.
wen how politicians unknowingly support a scammer (sam)
Awww, poor oil industry.
Once again you have monoscopic vision. Profits over people and the planet. Any technology developed is not lost orca waste either.
How Forbes unknowingly supports communism, hmmmm…the name must’ve been sold to the CCP