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Originally Posted by dready
Then why is sweet crude production falling?
Why are oil companies spending more on exploration than what they actually find?
Why are all major oil companies seeing their days as numbered and talking about a world beyond oil?
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light sweet crude is just one form of gas, overall oil production continues to rise and OPEC and NON OPEC countries (i.e Russia) are currently producing more than the world can handle. As I said, the trouble is the refinery capacity. that is causing the high prices.
Oil companies are spending more on exploration due to the fact that they are experiencing massive profits on the back of reduced refinery capacity which pushes up the prices, they are simply expanding their operations and market share whilst they have the cash flow to do so.
I am not sure where you get this "world beyond oil" stuff coming from, alot of it is clever PR from oil companies, but a few of them are spending heavy on R&D to develop new products for market.