You’d think the rising cost of oil and the big returns the related exchange traded funds (ETFs) have been dishing out year-to-date would have led to bigger efforts to look for more of the stuff. But it isn’t the case.
Jim Zarroli for NPR reports that things aren’t quite working like they should be. Ordinarily, when the price goes up, so does exploration and more oil hits the market. But this time around, things aren’t going as smoothly.
Oil companies have been largely unprepared for the windfall that $130 a barrel has brought them, and they’ve found themselves flush with cash to spend on new production. Must be nice!
Problem is, the industry is short on both skilled workers and equipment on which to spend the money. One analyst says they’re short of steel and short of pumps – and it takes years to build up the infrastructure necessary to do the exploration.