Oil Prices and Shell Profits
We have "bloated surpluses" of oil and consumption is way down this year in the U.S. from a year ago. OPEC has already cut oil production this year and there is no reason to believe it is going up anytime soon.
Royal Dutch Shell reported a 58 percent drop in Q1 profits compared to last year. This is similar to the 62 percent drop at BP and the 80 percent drop by ConocoPhillips.
Boy, I'll say one thing - it sure is a good thing that McCain/Palin didn't win. Their whole "Drill Baby Drill" energy plan looks pretty silly now (I commented on this months ago before the election).
Even if we allowed drilling anywhere, anytime in the U.S., oil companies are not going to waste their declining profits on building new rigs to flood the already oversaturated market with more oil. All that would do is reduce their profits even further.