Drill, Baby Drill, Part 2

Drill, Baby Drill, Part 2

In late January I wrote an article entitled, “Drill, Baby Drill. Not so Fast.” It made the case that oil companies would only increase drilling if the price of oil justified the required capital spending. In spite of the rhetoric U.S. drilling is in retreat. Here’s why: When there is a glut of a product do manufacturers produce even more of it, or less? Obviously less. There is an oil glut that has sent the price of crude to $60, down about 15 p…