Gas prices are high. Oil CEOs reveal why they're not drilling more

Gas prices are high. Oil CEOs reveal why they're not drilling more

By Matt Egan, CNN Business
Updated 1:06 PM ET, Thu March 24, 2022

high gas prices. Oil company CEOs say Wall Street is to blame.

Fifty-nine percent of oil executives said investor pressure to maintain capital discipline is the primary reason publicly traded oil producers are restraining growth, according to a Federal Reserve Bank of Dallas survey released Wednesday.

For years, the boom-to-bust oil industry spent lavishly to fund all-out production growth. US oil output skyrocketed, keeping prices low. Yet sustaining profits proved elusive. Hundreds of oil companies went bankrupt during multiple oil price crashes, leading investors to demand more restraint from energy CEOs.

... https://www.cnn.com/2022/03/24/energy/gas-prices-oil-production-wall-street/index.html​

Looks like "drill, baby, drill!" is out of fashion and not about to come back any time soon. The wealthy on Wall Street just won't let it happen because they might be a little less wealthy if the gamble doesn't pay off.

Looks like the only solution to high gas prices in the near term is to use less gas.

 

After taking a beating in 2020 what else would they do?

 

Looks like they will be reporting record profits for the forseeable future.

 

Yep, and those profits will go to shareholders. This whole situation with rising fuel prices and producers refusing to up their output is yet another transfer of wealth from the majority to the fabled 1%.

 

But, but, the rightists all say it's Biden's and the Dems fault why these Corporations refuse to drill with the 9k plus leases they have been given. You mean to tell me that Corporate greed is responsible?? Say it ain't so! LOL

 

Gas prices per liter.



Inflation rate.

No need to wait long November is just 8 months away.

 

So Biden and the Dems want more domestic oil production. Got it.

 

But but but Biden and Psaki say it's all Putins fault.

 

You cant act as if each one of those leases is a) going to be able to produce anything to justify actually drilling at the site and b) going to last forever. Instead, ask yourself why they amassed so many in the first place. Here let me help.

The attacks on their industry are rampant. Leftists mean to destroy their entire sector within our lifetime (even though we're generations away from renewables being able to take over 100%). So every time we're in a period of cancer (aka when progressives are in power) oil/gas companies have to account for this. Imagine trying to run a business where every 4 or 8 years you have to deal with a destructive idiocy that comes along and drives the price of your goods up, drives the value of your dollars down, and cuts your supply of raw materials. During the good times you plan for the bad and that's what oil companies have done; that's why they have 9000+ permits. Makes sense right?

 

LOL, no. Your conspiracy nonsense makes no sense at all.

 

So the reason oil companies are not using the viable leases is because Democrats will eventually be in power again? Which happens every 4-8 years maximum…

Wow, if we could convert our grid to run on mental gymnastics we could end all of these debates

 

The beauty of falling for conspiracy theories is that there is no such thing as something so insanely stupid for a conspiracy theorist to believe. LOL

 

For starters it 9000 DRILLING PERMITS, not leases

And 9000 drilling permits is next to nothing when the area they are for is exploration and doesn't pan out..

 

Well, you're right! It helps to know something about the subject, otherwise propaganda makes the swallower look pretty dumb!

 

I work in the oil field and actually blame investors for the reason I haven’t had a pay raise in over a decade. So this shouldn’t be surprising to me…

 

This is true. There is risk involved.

 

What's so hard to figure out? Candidates make promises, President ByDumb was pretty clear about coal and Oil and how he was going to shut both down.. Sometimes I wonder if voters even follow campaign runners and what they stand for ¯\_(ツ)_/¯

 

Pretty clear people think finding oil THESE DAYS is as simple as walking around with a divining rod

OR, like Jed Clampet fins oil, he hollywood way

 

Its literally what oil companies have been doing even before Brandon came along. Stockpiling leases has been a stopgap strategy to attacks on their industry. And its not even half the story. Continuing along this 9000+ lease thing - leftists act like a lease is the end all be all, but its not. A lease on federal mineral estate acreage is simple a right to explore. Its not a permit for construction, its not a permit to drill, its not a permit to transport, its not a permit for right-of-way access, its not a permit for the various air and water variances, its not a permit for any of the several dozen regulatory compliance factors that have to be satisfied before a single drop of oil can be pulled by a drilling operation.

ALL of those permits, by the way, are being slow walked or outright suspended by Brandon's administration and, were slow walked or outright suspended by Obama's administration, and will undoubtedly by slow walked or outright suspended by the next prog administration. I don't know why either of you, or any leftist, acts like this **** isn't happening. Your candidates literally ****ing campaign on these promises (see video link at end). Leftists are proud to be anti-fossil fuel until the consequences of that agenda hit home and then you all act like you haven't been pushing for this **** all along. Well you're not fooling me and in 8 months we're going to see just how many other people haven't been fooled.

 

We get to elect new oil company CEOs?

 

Next to nothing yet somehow more than in decades? Odd

 

Not true. Biden has said oil exec greed is also part of the problem

 

So should it be more than 9000 or less than 9000,?

 

They can just go off and learn to code right?

 

Oil investors are not drilling more because the Biden Administration is sending signals that they are not going to be favorable to oil drilling.
Companies don't want to make huge investments that will not pay off for several years when they have reason to believe there is a high probability that the regulatory environment will not be friendly towards them or that permits will be revoked.