Bob Elliott
· Nonconsensus
· March 19, 2026 at 10:50
· ⏱ 3 min read
| Read on Substack ↗
Summary
The article argues that despite the US being a major oil producer, rising oil prices provide minimal economic benefit. A study of the 2022 price shock revealed that increased revenues were largely accumulated as corporate profits rather than being reinvested into labor or capital expenditures, thus failing to stimulate the broader economy.
•The US is now one of the world's largest oil producers and a net-zero consumer, a significant shift from past oil shocks.
•A study of the 2022 oil price increase showed that the benefits were not widely distributed throughout the economy.
•Higher revenues from oil prices were primarily captured as corporate profits.
•These profits were not substantially reinvested in labor or capital expenditures, leading to little overall economic lift.