With prices close to all-time inflation adjusted record, energy companies, governments, prospectors, and common citizens are investing heavily into facilities that generate crude and crude substitutes. Consumers of fuel oil and petrol products are starting to use their brains and economize; over time, these changes in behavior will shift the balance of power in the favour of the consumer. When this demand curve begins to shift an oil glut will emerge.
Across the country in states like Texas, Ohio, California, and Wyoming rusted well are coming back online and beginning to pump crude. Further the Chinese, is pursuing exploration with African nations Sudan, Chad, and the Congo. So the explotation of reserves will continue. Also, in Alberta, Canada Shell and other big wigs are developing massive strip mines to dig out tar sand. Tar sand can be refined into petroleum for about $30 per barrel.
It was just a few short years ago, when major energy giants were slashing their exploration budgets and cutting jobs; now those positions are en vouge again and its time to dig.
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