The winds are shifting in the U.S. oil patch, and it’s time everyone realizes exactly why.
Over the last four years, the U.S. oil and gas industry had been operating under what was undeniably the most hostile administration towards oil and gas development.
Don’t believe me?
Even if we throw aside all the harsh rhetoric that President Biden has slung at oil and gas companies since 2021, from vilifying companies for price gouging (spoiler: they weren’t) to discouraging domestic energy production at every turn, his actions spoke much louder than words.
Take a moment and think back over the last four years, and you’ll see just how debilitating the Biden administration has been.
On his very first day in office, we saw President Biden revoke a key permit for the Keystone XL pipeline, as well as ink an Executive Order that placed a moratorium on oil and gas lease activities in ANWR.
A week after his inauguration, Biden came out swinging again, this time pausing new oil and gas leasing on federal lands and offshore.
And if President Biden came into office heated, he’s certainly leaving with just as much spite. Yesterday, he announced a moratorium on future offshore oil and gas development on both sides of the country.
The Best Free Investment You’ll Ever Make
Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
The new ban encompasses all of the East Coast, the eastern Gulf of Mexico, off the coasts of Washington, Oregon, and California, as well as areas in Alaska.
This time, he used authority from the 1953 Outer Continental Shelf Lands Act that allows a President to ban future oil and gas leasing — and the real kicker here is that it will take an act of Congress for the President to reverse it.
Look, there’s a reason why our tight oil production is experiencing its slowest growth since the shale boom started nearly two decades ago.
Unfortunately, boosting output isn’t as easy as turning on the spigot, and we won’t see any meaningful impact until the second half of 2025 — all during a period when global demand for oil is hitting record highs.
However, it’s more than simply having Trump in office that will give a lift to the U.S. oil and gas industry (that helps, for sure). You know just as well as I do that the “drill, baby, drill” mantra is a thing of the past.
You see, it’s not about flooding our fields with more rigs, but rather boosting the drilling efficiency of each rig. How do you think we’ve pushed our domestic output to 13.2 million barrels per day with far fewer rigs in the field?
Well, it’s by squeezing out more oil out of each well, which isn’t an easy thing to do.
Some of the biggest oil companies on the planet are doing what they can to boost drilling efficiency. Chevron is experimenting with triple-fracking technology that will knock out three wells in a row to reduce both the time and cost of each well.
But then there are the real Permian gems that have been even more successful with new drilling techniques. They aren’t your household names like Exxon or Chevron, yet are delivering the kind of results that is making Big Oil envious.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.
