Maybe. Maybe not. But not because of policy
Posted on: January 20, 2025 at 20:30:27 CT
KC rules MU
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That's not how it works. Oil companies don't have a shortage of acreage to develop. They have a shortage of acreage with oil with a low cost of supply to develop. Opening high cost of supply and high risk (technical risk) acreage up for drilling won't alleviate that issue.
Most companies are presently cutting their capital budgets because the price of oil is relatively low and even starting to layoff employees. Prices might drop in the near term but a year or so down the road, they are going to rise again because fewer wells will likely be drilled. Then we will drill more and the price will drop again.
Edited by KC rules at 20:39:05 on 01/20/25