Conservative Budgets Still Rule at Oil Firms Despite High Prices

Oil companies in Houston and worldwide banked big profits for the first quarter of 2005, thanks to record high oil prices that have neared $60 a barrel.

But most of the companies actually produced less oil during the quarter this year than last.

That’s because most industry firms are not plowing their profits into finding and producing more oil. Indeed, most continue to base their operations on models that still forecast oil prices of $25-per-barrel or less
Houston Business Journal