An executive for ExxonMobil said Tuesday that oil firms are not likely to significantly step up production in line with President-elect Donald Trump’s “drill, baby, drill” energy agenda at a conference in London. [emphasis, links added]
Trump repeatedly pledged to unleash U.S. oil production on the campaign trail to bring down energy costs and assert America’s will on global markets, and he has assembled a serious group of energy-focused officials in his cabinet to help lead that effort come January 2025.
However, Liam Mallon, the head of ExxonMobil’s upstream division, told attendees of the Energy Intelligence Forum that the economics of a production surge may not make economic sense for energy companies, according to Reuters.
“We’re not going to see anybody in ‘drill, baby, drill’ mode,” Mallon said.
“A radical change (in production) is unlikely because the vast majority, if not everybody, is focused on the economics of what they’re doing,” Mallon continued. “Maintaining the discipline, driving the quality, driving the information, will naturally limit that growth rate.”
Notably, ExxonMobil is also urging Trump not to pull out of the United Nations’ Paris Climate Accords for a second time when he returns to the White House in January 2025.
U.S. oil production reached all-time highs under the Biden administration despite its regulatory crusade against the industry.
However, Trump is looking to drive production even higher by freeing up fossil fuel infrastructure and resource development across the country.
Scott Bessent, the wealthy hedge fund manager chosen by Trump to helm the Treasury Department, is pushing to increase U.S. energy production by three million barrels of oil per day or equivalent as part of his wider vision for how to deliver strong economic growth for the next several years.
Read more at Daily Caller
No Biden did not increase oil production to the highest rate ever. Here’s why. Every new President inherits a rate of production and amount of oil storage from the former Presidents as is true of Biden. So all Biden had to due was raise the rate of oil production and of oil reserves by one barrel. Once done the new president can say that he has highest rate and amount of oil ever. This a very clever way for the new President to say I am a proud of my oil policies. When in fact he or she has done nothing to help our oil reserves grow. Not an ethical statement but true. Also Biden took massive amounts of oil out of backup oil storage areas hoping to lower gas prices. It didn’t. The loss of America’s needed oil reserves is not part of the oil a President has increased or decreased oil reserves. Again very clever.
While I’m100% supportive of President Trump re this matter, however, oil co’s have to balance what they produce then process with demand. When supply exceeds demand, big oil can lose a fortune because they run out of storage capacity and have to quit product = sell off at below cost price.
The last thing we want to see is oil tankers parked at sea full of crude oil with nowhere to go.
Mallon sounds like he believes the climate scaremongers. Unscientific notions should never dictate policy.
Give a middle finger to Exxon-Mobile while removing the US from the Paris Agreement Accord–actually do what Obama and Biden had refused to do but submit this treaty as all must be done in the US to the Senate for an up-down vote. Biden wouldn’t do it because he new there was no chance in hell that the Senate would approve of this nonsense treaty turning over US sovereignty to an international organization.
Good! Let entrepreneurs out-compete Exxon by looking for potential subsidies from Trump administration to ‘prime the pump’ (i.e. in accord with Pres. Trump’s intentions to spike production by bringing new players into the space.)
Countering all good intentions is the law of supply and demand. You can be too good at what you do and go broke.