A New Wood Mackenzie Report Proves Oil Producers Are Lunatics

Like morons, the oil companies of the world have kept producing crude, as the price plummeted into the ground. It isn’t stubbornness that causes men to do stupid things; it is insanity.

According to a new Wood Mackenzie report, the oil producing companies of the world responded to a draconian drop in the commodity they sell by reducing supply by 0.1%, or 100,000 barrels.

“Since the drop in oil prices last year there have been relatively few production shut-ins,” according to the report. The company, which tracks production and costs at more than 2,000 oilfields worldwide, estimates that another 3.4 million barrels a day of production are losing money at current prices, of about $35 a barrel. It cautioned against expecting further closures, because “many producers will continue to take the loss in the hope of a rebound in prices.”

Yet, inspite of all of the excess supply of crude supplies worldwide, 96.4 million barrels of crude are still produced on a daily basis. This is an industry well deserving of extreme punishment and long term hardship.