Guys, this is what I have been saying for year. No energy company executive would dare to make investments guaranteed to lose money. "Drill Baby Drill", DBD, would mean flooding the market with product... which would mean low or no profits for the producers. So what would they do that? They have a fiduciary duty to SHAREHOLDERS. Not to Dear Leader.
https://www.cnbc.com/2025/03/27/oil-exe ... urvey.html
If Dear Leader ever writes an EO requiring oil companies to DBD, then you KNOW you've landed in a Soviet style command-and-control economy, where the politically-based diktat of the State outweighs economic sense.
ExxonMobil, Chevron, etc. will have become PDVSA del Norte (PDVSA = Petroleos de Venezuela).
That's why the oil industry gave so much money to Trump... they thought they could get on his good side. Look at what they say under the cover of anonymity, which I am sure Kash Patel is right now trying to peel back for Dear Leader.
He has no good side. He only has HIS side.
So thankful I retire from Oil & Gas in... 249 days. If I got RIF'd today, I'd welcome it. Please baby please... another severance package. And six months of $2000 / month Texas unemployment insurance.
The Biden years were fine for Oil & Gas. Our company had a big growth spurt 2021-2024. That's the reality, though the rhetoric was different, for political reasons. Now everyone is laying off. Chevron, ExxonMobil, Apache Corp, BP, Marathon, Enerplus, TotalEnergie, Shell (last two non-US but significant US operations).
Oil & Gas jobs are almost all $100k+ jobs. You don't just replace those with any old job. When enough of those people get laid-off, the economies of the oil producing States seize up, because no one wants to or is able to spend money. Even if you still have your job, but your relative or neighbor lost his.
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“The threat of $50 oil prices by the administration has caused our firm to reduce its 2025 and 2026 capital expenditures,” an executive said. ”‘Drill, baby, drill’ does not work with $50 per barrel oil. Rigs will get dropped, employment in the oil industry will decrease, and U.S. oil production will decline as it did during COVID-19.
The Dallas Fed Energy Survey is conducted every quarter with about 200 firms responding. The survey covers operators in Texas, southern New Mexico and northern Louisiana.
The scathing criticism in the Dallas Fed survey stood in contrast to major oil companies’ public comments CONCERNING DEAR LEADER at the industry’s big energy conference in Houston earlier this month."
“The administration’s chaos is a disaster for the commodity markets,” one executive said
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boglerdude
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Re: “The administration’s chaos is a disaster for the commodity markets,” one executive said
Peak Oil is real... every oil well, every oil field depletes. But it's very nuanced, and the timelines shift as oil exploration companies and economies adapt. Also it's a slow grind, and since people have the attention spans of fleas, they won't notice the big macro changes going on around them.
US hit peak conventional oil about on time, in the 1970s, but shale oil has pushed the timeline out. I have no doubt at some point the Midland Basin production will roll-over it we will have the true terminal peak of US Oil Prouction. When? Depends on prices. High prices reward explorers, so they will find those additional marginal barrels. Low prices shut them down, so Peak Oil comes sooner.
Oh by the way, WSJ headline today: "Trump Warned U.S. Automakers Not to Raise Prices in Response to Tariffs"
So Trump thinks he's king of the world, and can make fiat declarations to waive the laws of economics. If automakers are really forced to eat tariffs, they will go bankrupt, right? That's what I fear will happen to oil producers, they will get bullied and terrorized into a box.
He turns on everyone. He eats everyone. He has no friends. He doesn't even have a dog. The only thing that matters is Him.
US hit peak conventional oil about on time, in the 1970s, but shale oil has pushed the timeline out. I have no doubt at some point the Midland Basin production will roll-over it we will have the true terminal peak of US Oil Prouction. When? Depends on prices. High prices reward explorers, so they will find those additional marginal barrels. Low prices shut them down, so Peak Oil comes sooner.
Oh by the way, WSJ headline today: "Trump Warned U.S. Automakers Not to Raise Prices in Response to Tariffs"
So Trump thinks he's king of the world, and can make fiat declarations to waive the laws of economics. If automakers are really forced to eat tariffs, they will go bankrupt, right? That's what I fear will happen to oil producers, they will get bullied and terrorized into a box.
He turns on everyone. He eats everyone. He has no friends. He doesn't even have a dog. The only thing that matters is Him.