![]() ![]() Given this pressure from Wall Street, many energy executives, particularly those at smaller firms, are perfectly willing to defy the White House. In a recent survey of executives at more than a hundred oil and gas firms, carried out by the Federal Reserve Bank of Dallas, nearly sixty per cent of respondents said that the “investor pressure to maintain capital discipline” was the primary factor holding back the growth of production. In an earnings call with Wall Street analysts last week, Sheffield reiterated that Pioneer would cap its growth at five per cent this year and next year. ![]() “Whether it’s a hundred-and-fifty-dollar oil, two-hundred-dollar oil, or a hundred-dollar oil, we’re not going to change our growth plans,” he said in February. “We are not adding any growth capital due to higher prices: we are staying disciplined,” Lee Tillman, the chief executive of Marathon, told Wall Street analysts last week. In a recent earnings statement, Exxon noted that its output from the Permian Basin, which is situated in Texas and New Mexico, would rise by more than twenty-five per cent this year, and Chevron said that its production from the same area would rise by fifteen per cent.Ī major factor holding back U.S crude production, according to industry analysts, is the attitude of the smaller energy firms, which contribute to a sizable portion of total output. A senior Administration official whom I spoke with strongly contested this argument, saying no oil companies have told the White House that they weren’t increasing production because of a shortage of pipelines. oil production hasn’t fully rebounded, citing the Administration’s decisions to cancel the Keystone XL pipeline and freeze new drilling leases on federal lands. ![]() Some Republicans and oil-industry lobbyists blame the Biden Administration for the fact that U.S. operations produced slightly less crude in the first quarter of this year than they did in the previous three months, but more than they did in the first quarter of 2021. On the domestic front, both companies said that their U.S. What about increasing output? Exxon and Chevron both reported that, during the first quarter, their over-all production of oil and gas, which is pumped from drilling facilities in many parts of the world, fell slightly compared with the previous quarter. Chevron said that it will devote ten billion dollars this year to buybacks, double its previous target. The company announced it will spend up to thirty billion dollars on buybacks between now and the end of 2024. Exxon said that it intends to triple its purchases of its own stock from investors-a financial tactic corporations use to reduce the number of shares they have outstanding and boost their earnings per share. They’re using it to make their shares go up.” The latest earnings announcements from the oil sector seem to back up Schumer’s point. “They’re not using the money for domestic energy production,” Chuck Schumer, the Senate Majority Leader, recently claimed. This shortfall raises the question of whether energy companies are deliberately sitting on their hands to keep prices and profits high. oil fields generated around thirteen million barrels of crude a day last month, they produced less than 11.9 million barrels a day. oil production is still running far below its pre-pandemic level. It’s time for reinvesting in America.” Despite this appeal, though, over-all U.S. My message is: it’s time-in this time of war, it’s not a time of profit. “The C.E.O.s of major oil companies have said they’ll increase investment and production,” President Biden said in March. energy companies to help drive down prices by adding more rigs, pumping more crude, and increasing supply. The Biden Administration hasn’t endorsed this idea, but it is pushing U.S. Some Democrats on Capitol Hill have called for a windfall tax on oil companies. Last week, Pioneer Natural Resources reported first-quarter earnings of two billion dollars, and Marathon Oil reported revenues of $1.3 billion. and often referred to as wildcatters, are also profiting enormously. Smaller energy producers, which are concentrated in the U.S. In the first three months of 2022, ExxonMobil pocketed $5.5 billion after taxes Chevron gained $6.3 billion and ConocoPhillips made $5.8 billion. reporting that the average national gas price reached a new high of $4.37 per gallon last week, Big Oil has been making historic profits. With the price of crude oil soaring to more than a hundred dollars a barrel this year, and A.A.A. ![]()
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