Why would oil companies risk billions of dollars in exploration, drilling, infrastructure, and refining capacity, all for the privilege of charging less money for their products?
You have to have a product to sell.
All commodities are based on futures pricing. All companies that produce commodities, balance increasing production with stabilizing pricing....cattle, corn, oil, gold etc.
It does no good to rely on prices increasing from lowered production, if your (XYZ Corp) production is decreasing because you stopped expansion and your wells are drying up. You're just making ZZZ Corp's bottom line look good, who increased production to cover your decreasing/stagnant market share.
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