Chevron Typifies Business Dynamism
From Brandon Henak we have Chevron as a great example of a company adapting to its environment. When it comes to taxes and regulations many on the Left fail to realize businesses don’t remain static when their lobbyists fail to win over legislators and regulators. Companies as entrepreneurs continue seeking profit opportunities. They don’t sit there and go along with the new status quo.
Brendon writes,
Any market, energy or otherwise, will always react. Companies are always looking to the future and working to build a sustained advantage. When oil companies see that they are drilling for a limited amount of product they will look for more and look farther into the future for new ways to supply energy, without governemnt intervention. The demonization of big oil and the legislation that results from it helps no one.
Chevron saw a way to make money from ethanol and pounced claiming 70% of U.S. production. They didn’t do that out of the goodness of their hearts; they did it to make as much money for Chevron stockholders. If it helps the environment and U.S. energy security that’s an added bonus for Chevron. The thing to remember is there’s a quasi-law of physics in political economy: for every government action there’s a private sector reaction.
“‘Evil Big Oi’” Chevron Makes 70% of Ethanol, Helps Pension Fund”
