The companies are also seizing savings amid the downturn, particularly in the U.S. Jay Johnson, a Chevron executive vice president, said the company had been able to bring down the cost of tapping oil and gas by 20% to 50%, making it profitable to drill some new prospects even at today’s oil prices. Exxon has operated at a lower cost on U.S. soil over the last three years than many smaller drillers, said Jeff Woodbury, head of investor relations. But both companies reported losses from their U.S. oil-and-gas drilling operations through the first half of the year, as have rivals BP PLC and ConocoPhillips.Maybe it never actually cost that much, they only spent that much. Being in control by government preference of everything from drilling, refining and retailing, you can play all sorts of games to keep the cash flowing in.
That's how come at $52 a barrel, we are still paying $3.50 at the pump, whne it should be maybe $2.
Capitalism sucks, we need free markets.
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