At the Chicago Booth Graduate School of Business Management Conference Friday, I listened to a panel discussion on energy. It was interesting, primarily because the two panelists didn’t mince words.
They offered up some interesting stats. Did you know that Chevron ($CHV) spends $33 billion a year just to keep the doors open and the lights on. Amazing operating budget. For that 33 billion spend, they control 2% of the world wide oil market.
Conclusion: Running an oil company isn’t cheap and has a lot of fixed costs.
Question: Why do we demonize, regulate and tax the crap out of them?