Why Nobody Wants to "Drill, Baby, Drill" [or disagree?]

https://www.fool.com ^ | Jul 20, 2022 | Travis Hoium

[UMCRevMom@aol.com]

Gasoline prices are high for consumers, but why don't oil companies want to drill for more oil? There's a good reason.

Oil prices are high, and there's a desire for greater energy independence around the world. It seems natural that drilling would increase in the U.S., Europe, Brazil, Africa, and even the parts of Europe where oil is available. So, why isn't drilling increasing at a rapid rate?

There are a number of reasons, and the market dynamics can give us some answers. While gasoline prices are high at the pump, the market won't be pricing in elevated oil prices forever, so oil companies and investors are hesitant to put too much money into the ground. There are good reasons why "Drill, baby, drill" isn't the refrain in the industry today.

Oil companies are licking their wounds

In the oil crash of the mid-2010s, investors in oil companies lost over $1 trillion in value in equity and debt markets. You can see below that even industry leaders like Royal Dutch Shell (SHEL 0.52%), Occidental Petroleum (OXY 1.02%), Transocean (RIG 2.54%), and Halliburton (HAL -1.72%) all reported losses for at least one 12-month period; Shell is the only one of these four to make a significant profit from 2014 to 2018.

[G Larry]

"...but why don't oil companies want to drill for more oil?"

I reject the premise!

[mountainlion]

The government is strangling oil production. Just look what Polis-schults did to Colorado after we the people voted in support of crude oil industry.

[Vermont Lt]

If I have to drill in 5 places to make my money back, I need to make sure I can actually get to the site…and get the oil/gas off the site.

There is a lot more to this than drilling.

[marktwain]

America must sacrifice oil, energy self sufficiency, export and freedom because it is more important to send weapons and money to Ukraine aid Vladimir Putin and Chinese Supremacy.

There, fixed it.

[Navy Patriot]

Sorry, you didn’t fix anything, you just confused the US Government’s Goal with the Results of achieving that Goal.

[clearcarbon]

"The first step should be a Federal Law prohibiting ALL Public Employee's Nationwide from using any means or mode of Transportation that uses any type of Fossil Fuel. GIVE THEM WHAT THEY WANT FOR US

Are they still exempt from obamacare?