In a world of energy shortages for consumers but abundant energy in the ground, it is puzzling to many people, why oil and gas companies refuse to produce more oil and gas.
First year economics tells us that supply will eventually equal demand because new entrants to an industry will produce what consumers demand or provide alternatives to reduce core demand. You need to look no further than the nightly news coverage of European energy shortages and historic high prices for gasoline and diesel to see this is just not happening.
It turns out that oil and gas investors are holding back oil and gas production. The energy sector is highly cyclical and NEEDS to make what seems like unethically high profits from time to time, to compensate for devastating financial losses in previous years.
Beyond that OPEC countries like Saudi Arabia and Nigeria are pumping all they can. They have no extra to draw on so there is no releif from them.
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