US Energy

I watched in astonishment. Negative??? THE PRICE OF OIL WAS """NEGATIVE?!?!?!"""

Key Points

• After 38 years of declines in U.S. Crude Oil production, from 1970 to 2008, over six presidents and ten presidential terms, crude oil production in the U.S. staged what has been a drastic increase over the past 16 years
  • The increases were 30.5% and 35.7%, respectively, over Obama's first and seconds terms
  • 27.9% during Trump's term
  • and 16.7% during Biden's term
• In 2018, the U.S. became the #1 oil producer in the world, and has remained #1 since then
• During the same time period, natural gas production increased 35% and 45.7% during Obama's terms
  • 47.5% during Trump's term
  • and 33.6% during Biden's term
  • in 2011, during Obama's first term, the U.S. became the world's largest natural gas producer, and we have remained #1 for 14 years
• In 2005, at the peak, while George W. Bush was president, we were importing a net 12.5 million barrels of petroleum, mostly crude oil, per day
  • By the end of Obama's second term, that number had be slashed by over 60% to 4.8 million barrels per day
  • By the very end of Trump's term, the U.S. became a net exporter, exporting over 600 thousand barrels per day of petroleum, mostly natural gas
  • By the end of Biden's term, the figure had grown to a net 2.3 million barrels per day.
• The U.S. is also the world's largest producer of natural gas, producing about 40% more than the second largest producer, Russia, and 300% more than the amount of the third largest producer, Iran.
• When it comes to crude oil and natural gas, the U.S. has been on an impressive production trajectory for over 16 years, and has been the greatest producer for over four years.
• It's impossible to make the U.S. great "again" when it comes to oil and gas -- we've been there for years.

https://www.eia.gov/todayinenergy/detail.php?id=61545

Largest oil producer in world by 2018, close in 2015

the Policy and Political noise

"big oil companies are unlikely to “Drill, baby, drill” even if incoming President Donald Trump wants them to"

Exxon Mobile CEO: "As crude prices come down, we expect the industry revenues to go down and profits to go down," ExxonMobile CEO Darren Woods told CNBC last week.

Oil tycoons who flocked to support Trump want him to drop all barriers and go after alternative energy, but they also worry about an over supply of oil.

“Our stocks will be absolutely crushed if we start growing our production the way Trump is talking about it,” Bryan Sheffield, a Texas oilman who contributed more than $1 million to Trump’s latest campaign, told The Wall Street Journal.

American producers aren’t looking now to boost supply, and likely won’t be enticed to “drill, baby drill” until prices reach an average $84 per barrel, which is close to 15 percent above current prices, according to the Kansas City Federal Reserve.

https://pipexch.com/exxon-ceo-on-u-s-election-not-sure-how-drill-baby-drill-translates-into-policy/

“I’m not sure how ‘drill, baby, drill’ translates into policy,” Woods told CNBC’s “Squawk Box” on Friday after the largest U.S. oil and gas company reported third-quarter results.

Woods said U.S. shale production does not face constraints from “external restrictions.” The U.S. has produced record amounts of oil and gas during the Biden administration.

Over the past six years, the U.S. has produced more crude oil than any other nation in history, including Saudi Arabia and Russia, according to the Energy Information Administration.

Output in the U.S. is driven by the oil and gas industry deploying technology and investment to generate shareholder returns based on the break-even cost of production, the CEO said.

“Certainly we wouldn’t see a change based on a political change but more on an economic environment,” Woods said. “I don’t think there’s anybody out there that’s developing a business strategy to respond to a political agenda,” he said.

Chevron CEO: slashing capital investments in oil https://www.barrons.com/articles/chevron-cash-capital-budget-68986d07

https://www.cnbc.com/2025/01/22/rbn-energy-ceo-trump-energy-drilling.html?msockid=317c7ce82e1f6d8f0ff269de2f926c8f RBN Energy exec: Trump’s oil and gas push won’t necessarily bring more drilling According to Braziel, more oil leads to lower prices, which leads to lower dividends from large producers, to be motivated to ‘drill, baby, drill,’ I’ve got to do the right thing for my shareholders.”

The Oil Subsidies or Tax breaks or not???

https://www.forbes.com/sites/drillinginfo/2016/02/22/debunking-myths-about-federal-oil-gas-subsidies/

Or do we???

Taxpayers subsidize about $20 billion per year to fossil fuels: oil, gas, and coal

Almost $5 billion per year goes to oil, with about half going to the big five: https://www.eesi.org/papers/view/fact-sheet-fossil-fuel-subsidies-a-closer-look-at-tax-breaks-and-societal-costs https://www.motherjones.com/politics/2014/04/oil-subsidies-renewable-energy-tax-breaks/