There will be no "drill, baby, drill": US oil giants are going to make money

US oil and gas companies are unlikely to seriously increase oil production, as they are more interested in revenues rather than low prices. This was stated by the representative of Exxon Mobil Liam Mallon.

US President-elect Donald Trump said that the US would sharply increase production in order to lower commodity prices. However, oil and gas companies look at it differently.

"We will not see anyone in the "drill, baby, drill" mode," Liam Mallon, head of Exxon Mobil's exploration and production division, said at the Energy Intelligence Forum conference, Reuters reports.

According to the representative of the oil giant, radical changes in production are unlikely because the vast majority of companies, if not all, are focused on the economics of what they do.

"Maintaining discipline, improving quality, disseminating information, of course, will limit the growth rate," said Liam Mallon.

The US is already the largest oil producer in the world, producing 13 million barrels per day. Donald Trump is going to speed up the issuance of drilling permits on federal lands and resume the preparation of five-year plans for work in the Gulf of Mexico in order to increase the number of sites leased. According to a representative of Exxon Mobil, the acceleration of the issuance of land permits can provide short-term growth in production.

As EADaily reported, Donald Trump's transition team is preparing a large-scale energy package. The abolition of numerous restrictions imposed under Joe Biden is planned immediately after the new US president takes office in January. Experts doubt that this will lead to a drop in oil prices.

Igor Yushkov, a leading analyst at the FNEB and an expert at the Financial University under the Government of Russia, noted that the current oil production in the United States is at its maximum and should not count on rapid growth.

"Trump is associated with the oil lobby and industry, but his role should not be exaggerated, since it is not the US president who determines the volume of oil production," the expert said. He cited as an example that the main growth in the production of raw materials occurred in the United States under Obama and Biden.

"Because the price increased and the projects became profitable. Now, the increase in production on federal lands and off the coast of the United States will not be large and is likely to compensate for the decline in production at dwindling fields. We won't see any breakthrough," Igor Yushkov noted.