Quartz. (2022, February 1). Surging oil prices will test the resolve of companies to cut back on drilling. Retrieved February 6, 2022, from https://qz.com/2119520/exxonmobil-plans-to-boost-spending-on-oil-drilling-45-percent-in-2022/

Oil prices have reached their highest point since October 2014, and are being inflated by the fact that geopolitical tensions in Eastern Europe could lead to a cut off with Russia. Typically, high oil prices cause companies to increase drilling. This can be detrimental to the environment, as companies are most likely going to be increasing the amount of money invested into drilling. For example, Exxon has announced large scale drilling expansion plans for 2022, expecting to invest up to 24 billion dollars. Additionally, Exxon’s New Energies program will have a budget of about 1 billion dollars, while it will spend 24 billion on crude oil extraction. 

I think that while high oil prices are a potential gold mine for companies like Exxon, it is necessary that we begin to move away from further expansion in crude oil extraction. Due to Exxon cutting spending from low carbon programs and reinvesting that money into drilling, they are reversing the momentum which has been made into clean energy. As a first step in the right direction I believe that our government should increase regulations on oil companies, in order to contain them from extreme expansion. If we continue to allow drilling expansion, not only will it be a tragedy of the commons, but our carbon footprint will drastically increase. Moreover, this reallocation of funds into drilling expansion will take away money from research into new energy alternatives. While we cannot control how these private businesses are allocating their funds, it is essential that we continue to push for cleaner alternatives to fossil fuels, as companies will adapt in order to appeal to customer demands. Through continuing to push for net-zero emissions, we will hopefully be able to move away from the use of fossil fuels.