As a rational business strategy, oil producers should use higher prices, artificially curb production, limit capital expenditures, and earn windfall profits while the clouds are gathering over the industry. In general, the days of fossil fuels are numbered. You can't worry about the world the economy, the impact of higher prices on poor countries, or how this strategy will help Russia earn and fill the budget - you need to act. This call was made by economic and energy experts Leonard Hyman and William Tilles. Their opinion leads the OilPrice resource.
If it's not illegal, then do it.
– directly write analysts.
Eminent experts are sure that the long-term consequences of this strategy for the industry and the reputation of oil producers can be bad. But if manufacturers have already come to the conclusion that they have limited long-term prospects and no image benefit anyway, then why bother?
Indeed, as Hyman and Tilles write, major oil industry clients have provided the supplier with a timetable for exiting the market and are investing billions of dollars here and now to make that move. What should oil producers do? In a sense, this future resembles a soap bubble and there is only one way out of the situation.
In summary, experts remind that the oil market expects slow growth ahead, and then even slower growth in the next decade. The oil industry's most important client, the transportation sector, has turned out to be unfaithful and has declared its intention to change fossil energy with another source of energy. But for now, consumers with existing vehicles need gasoline and will pay what they need to get it. This is business. Not forever and not beautiful, but still profitable. Therefore, it is worth getting rid of remorse, unnecessary doubts and for the sake of profit (temporary!) Do what pragmatic calculation advises large companies, experts believe.