'Drill, Baby, Drill' Is Unlikely Under Trump, Exxon Says

Wednesday, November 27, 2024

Oil and gas producers in the US will not raise output significantly in the coming years despite calls from President-Elect Donald Trump to "drill, baby, drill," said Exxon Mobil Corp.'s Upstream President Liam Mallon. "I think a radical change is unlikely because the vast majority, if not everybody, is primarily focused on the economics of what they're doing," Mallon said on Tuesday at a conference in London.

Posted by LampLighter at 07:33 PM | 5 COMMENTS | permalink | Comment on This Entry |

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... Trump is expected to open up federal lands for more oil and gas drilling, but much of the land in the country's largest oil and gas producing state, Texas, is private. Still, there's plentiful federal land in neighboring New Mexico which includes the oil- and gas-rich Permian Basin.

"If those rules were substantially changed, you would be able to drill more, assuming you have the quality and met your economic threshold," Mallon said. "But I don't think we're going to see anybody in the drill, baby, drill mode. I really don't."

Exxon's European rival TotalEnergies SE is also skeptical of Trump's vow to open US taps.

"Maybe he has a magic recipe to push them to drill like mad," TotalEnergies Chief Executive Officer Patrick Pouyanne said at the conference. He cited US producers' commitment to return cash to shareholders and said "it's not only decisions by politicians" that drive American output.

The US is pumping more than 13 million barrels of crude a day, exceeding every other nation and up almost 45% in the past decade.

With a surplus looming next year, the global oil market is watching to see at what rate American explorers drill new wells.

Many of the biggest US operators are taking a long-term approach to production, weighing when to bring certain wells online against their overall inventory. ...

#1 | Posted by LampLighter at 2024-11-26 06:20 PM | Reply

Trump can go suck off a mic stand.

#2 | Posted by LegallyYourDead at 2024-11-26 10:31 PM | Reply

@#2

Well, thank-you for the reminder of that image.

I had finally gotten rid of it, but now it is back.

The Pres-elect --------- a microphone stand.

Combined with his attraction to the Village people's tune "Y.M.C.A.", well. I have questions ...

So many questions.

#3 | Posted by LampLighter at 2024-11-26 11:07 PM | Reply

For some years now gas and oil developers in Okiehomie have focused on returning money to their owners. Why? The easy oil and gas have long since been developed and the cost to develop new plays is such that it is not economically feasible to do so. If West Texas Intermediate was $140 per barrel things would be different. Now is an excellent time to raise gasoline taxes and further update the nations roads and bridges, but if the Sooner or Later State is an example, most would rather have lousy roads than pay another $.20 cents per gallon ...

#4 | Posted by catdog at 2024-11-28 10:35 AM | Reply

"Drill, Baby, Drill" is simple minded thinking. Resource industries are already set up to be as efficient as they can be. Higher production takes time over years, as it always has.

Let's say we want to double oil and gas production. Where does all the extra equipment come from? How are refineries going to refine twice as much? Where is all the extra oil and gas going to be stored?

It's called supply and demand for a reason.

#5 | Posted by Derek_Wildstar at 2024-11-29 01:52 PM | Reply