"If we do less investment there will be less supply for consumers" which would drive prices higher."
"The world needs energy."
Further illustrating this principle in action:
Petercam analyst Alexandre Weinberg:
He said the company was reinvesting profits and now expects capital spending of between $35 billion and $36 billion this year, up from the last previous estimate of $24 billion to $25 billion. That figure includes the company's $5.8 billion bid for Canada's Duvernay Oil Corp., launched earlier this month.
So, it stands to reason that proposed "windfall profit taxes" on oil companies would decrease their profits, reduce capital spending and therefore reduce future supplies which would translate into even higher prices. Unfortunately, logic and reality will not stand in the way of Congress.
"Though the sentiment toward the majors (major oil companies) has weakened in the past weeks due to the oil price decline, we believe that Royal Dutch Shell will continue to generate massive cash flows," he wrote in a note on the earnings."The following 18 months should see significant production capacity increase," he said, citing a large project on Sakhalin island in Russia expected to begin production at the end of the year.