And alot of smaller oil companies were driven out of business when oil prices dropped significantly. So I would have to disagree with your claim that oil companies can make money at any price. That just isnt the case.
The American Consumer has been spoiled. Oil is nowhere near as expensive as it was in the 1970's, especially after being adjusted for inflation. Oil should actually be much higher and IMHO probably will be.
The largest and easiest oil fields have already been found. And while there is still probably plenty of oil out there, it is definitely in locations which are more difficult to get to. So yes the oil is there but it is becoming increasingly more expensive to find. The low hanging fruit has already been found.
I see a bull run continuing in oil stocks because the average investor has not piled into the sector yet. Ask your neighbors and they couldnt tell you the first thing about oil stocks. This is not like tech in the late 1990's where every Tom, Dick, and Harry knew about tech stocks and hence came the dotcom bubble. In fact if you watch shows like Mad Money, the people who call in are still hung up on tech. Its almost comical to watch. They havent figured out the 1990's are gone. They went out with Bill Clinton and Monica Lewinsky.
