Oil and Gas Producers in the US to Maintain Output Levels Despite Trump’s “Drill, Baby, Drill” Calls
Exxon Mobil Corp.’s Upstream President, Liam Mallon, predicts that oil and gas producers in the US will not significantly increase output in the coming years, despite President-Elect Donald Trump’s rallying cry to “drill, baby, drill.”
Speaking at a conference in London, Mallon emphasized that the industry’s primary focus remains on the economic viability of their operations, suggesting that radical changes in drilling practices are unlikely.
While Trump’s administration is expected to open up federal lands for expanded oil and gas drilling, much of the productive land in states like Texas is privately owned. However, neighboring New Mexico offers ample federal land, including the oil-rich Permian Basin.
“If regulations were to undergo significant changes, there might be opportunities to drill more, provided the economics are favorable,” Mallon stated. “But a widespread shift towards ‘drill, baby, drill’ is improbable.”
The US currently leads global oil production, pumping over 13 million barrels of crude oil daily, a nearly 45% increase in the past decade. However, with an impending surplus, the industry is carefully evaluating the pace of new well drilling.
Notably, Mallon’s stance aligns with Exxon Mobil CEO Darren Woods, who recently advocated for continued US participation in the Paris climate agreement. Woods emphasized the importance of pursuing sensible carbon reduction policies while engaging in international climate efforts.
Furthermore, Mallon reiterated the company’s support for the US Inflation Reduction Act (IRA), a program that offers incentives for eco-friendly practices like carbon capture, hydrogen production, and sustainable aviation fuel development—initiatives that appeal to oil companies seeking to enhance sustainability.
Overall, Exxon Mobil’s commitment to balancing economic interests with environmental considerations underscores the industry’s evolving approach to energy production in an era of heightened climate awareness.