Will oil companies really drill more to raise production and lower profits?
Drilling more will not lower oil prices any time soon, if at all. It takes an estimated 10 years for oil fields to be developed. Never the less, what producing more oil from drilling WILL do is bring more money into the pockets of the oil companies and consequently their stock holders and investors. In addition, it will bring more money to the US government since they will tax all of this oil production. Right now, the oil companies only make about 12% on a gallon of gas. That may be billions of dollars, but a hella lot more goes to the countries in the Middle East who actually drill for the stuff. 60% of the cost of a gallon of gas goes to those countries to pay for the oil (that gasoline comes from). So, the more gas and oil we use, the more money we give to the Arabs and the weaker the dollar becomes. But, if the oil companies are producing it domestically, more money will stay in the country. This means it will help strengthen the dollar, lower the trade deficit and help the econom
