My single largest position is Enterprise Products, the premier oil and gas pipeline operator, and among my other top twenty are South Bow, Vitesse Energy, Expand energy (formerly Chesapeake Energy,) and Tortoise Energy Infrastructure (a pipeline fund.)
The idea that the US is going to be entering an oil-drilling boom is ludicrous. We are already at record-high production.
Production companies boomed with the advent of fracking in the early teens, which is why production went through the roof even under an anti-fossil fuel Obama administration. The new horizontal drilling technology trumped the government's best effort to squelch production.
As with most innovations, enthusiasm led to a massive overspending on new fields. When WTI sold off from the $80s and $90s to the $30s in 2015-2016, a host of marginal players got wiped out and a lot of more-established players were forced to tighten their belts just to survive.
Shareholders and banks wrote off billions.
The lesson from that was that expanding production in good times is a high-risk proposition, which is why in the last ten years oil companies have prioritized share buybacks over new production.
And the proposition that oil and gas companies now are chomping at the bit to expand production is supremely illogical: why should they be the agents of lower prices? To build production from current levels means to boost surpluses that will drive down prices, resulting in their new investments going underwater.
Between the economic constraints energy producers face, there is the shared history of massive losses the last time the industry boosted supplies.
I would be shocked if overall production increases even 10%.
BS!
Empty Stategic Petroleum Reserve
Interesting. What about all the small independent companies that want in on the action?
They’re cheaper. The idea is to undercut OPEC and the Russians.
If the oil companies increase or even decrease production the price of oil will come down as competition for the product takes place. Who cares if production is increased or not, the competition will drive PRICE DOWN. That will determine whose oil is purchased. You want to stay in the game, you’ll have to supply cheap oil.
Just take all that green money and give it to the oil companies with strings attached. We would have lots of oil.
We had it during his first term. We were an oil exporter that caused Iran to almost go broke.
Indeed, other rumors/scuttlebutt we hear is that Trump will have Saudi Arabia open the oil spigots - but the first to shut in production, or even be bankrupted, would be US oil producers
We now have also tariffed our biggest oil supplier, Canada, which will have the effect of slashing capital investment there. Its also throwing a political life-line to Trudeau and the Liberal Party, who were about to absolutely trounced by the Conservatives.
Yes but it takes time. All their plans have been based around green new bullshit for fours now. Trump will no doubt offer incentives to get the industry on warp speed.
Pipeline expert? I have a real stupid idea I just wanted to bounce it off of someone. is a pipeline from Nova Scotia to Greenland to Scotland to Europe feasible?
By the way line up those refineries and those tankers and whatever it takes to ship the oil out cause we need to drill baby drill and bring the price down. Energy independence here we come. Damn the torpedoes full speed ahead.
Never say can’t. Trump’s gonna steamroll right over all the can’t doers.
Let’s not forget the record number of new regulations forced down the throat of American industry. If that can be paired back that will result in a cost savings to the energy companies.
This sounds an awful lot like a "combination in restraint of trade" to me. A legal position to be avoided at all costs.
Oil and gas leases on public lands need to be on a use it or lose it basis. We need to turn some lean, hungry barbarians loose among the fat cats.
No, but he can remove the regulatory roadblocks that prevent them doing it themselves, then the rest will come naturally.
DRILL, BABY, DRILL!
In 2023, the United States consumed about 7.39 billion barrels of petroleum, or about 20.25 million barrels per day.
Pedal your rabid Trump hating propaganda somewhere else. No one interested in hearing what new lie you manufactured to push today
Oh got it. You aren’t divested and are panicking that President Trumps moves will drive down your stock value.
They could sell more to other countries.
According to the EIA, the US matched and surpassed its 2019 record oil production levels in 2023, averaging 12.9 million barrels per day, which was higher than the 2019 record of 12.3 million barrels per day
In 2024 the US was averaging 13.2 million barrels per day.
For context:
In 2024, the United States consumed an average of about 20.45 million barrels of petroleum per day.
It must be happening somewhere else besides East Texas. It has yet to recover here.
When are the prices of tires supposed to come down as well as other products made with petroleum? Methinks the greed is over the top with these folks among others. Have noticed throughout the years that when gasoline prices drop, for instance, prices on other items that utilize petroleum remain more or less the same. Many of these companies refuse to take the hit to their bottom line like the rest of US small timers.
How empty is the Strategic Petroleum Reserve currently? Let’s fill it if/as prices fall.
What would 10 new nuclear power plants add to our grid capacity? Let’s begin building in expedited National energy emergency fashion. Let’s stop coal plant shutdowns and add natural gas electric plants.
Where could we improve pipeline access and coverage here? Must we depend on Canada to supply oil and natural gas etc to Wisconsin and Michigan? Could we supply them internally?
Could we not log our own trees and mill them into lumber rather than buy Canadian?
Prepare for shock. 😉