Up until the fracking boom, oil companies were adopting that strategy, they weren't replacing reserves through exploration as fast as they were depleting them,

Up until the fracking boom, oil companies were adopting that strategy, they weren't replacing reserves through exploration as fast as they were depleting them, and they were using cash to buy back stock, and other companies that had reserves that could be acquired cheaper than drilling for them. http://www.houstonchronicle.com/business/energy/article/Oil-companies-face-difficulties-replacing-reserves-6562231.php http://www.houstonchronicle.com/business/energy/article/Oil-... I think the big change in the market is fracking, some lifestyle change toward less driving and energy intensity, not so much alternatives yet. But it could happen.