As the recent energy boom is currently in full stride, there are now increasing fears that production output will decrease as profits are now lower for big oil companies. Two Wall Street Journal articles talk about the recent changes by several of the big oil companies in international investments and drilling and exploration efforts. One article “Big Oil Feels the Need to Get Smaller“, found that the three big oil companies of Shell, Exxon and Chevron have been spending more on operations than they have been bringing in.
Another WSJ article, “Cheaper Energy Could Be a Mixed Blessing“, focuses on small to mid-sized energy companies that will struggle with lower oil prices. While this article has a similar fear as the other WSJ article, it also talks about how great the boom and lower prices are for the U.S. economy.
There is much opportunity for everyone during this energy boom. The fear of energy companies scaling back or suffering from falling prices should not act as a reason to keep the prices up. An open and free global energy market will adjust itself naturally to changing prices and opportunities. Lower prices can offer tremendous opportunities as well as open doors to new energy markets.