Apparently what goes down must also come up. In the times of economic hardships, the demand for oil has fallen on a global scale. This has caused some oil companies to cut back on spending. However, cutting back on upstream/exploration investments now will mean less oil supply when the demand for oil inevitably rises again (big fields can take more than a decade to develop). Less supply and greater demand means high prices.
On the bright side, I suppose this means that now is a good time to buy oil stock. The down side is that expensive oil is the last thing a recovering America needs, especially when China and other developing nations will be the buyers pushing up the demand and price of oil.
But apparently some oil companies with enough means are still investing in these down times. Exxon Mobil is ramping up its spending to increase its supply now in anticipation of the the big spike in demand that will most likely accompany the return of economic normalcy. I predict that in 200 years the only remaining institutions of mankind will be the country of China and Exxon Mobil.
Bust and Boom
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