President Donald Trump’s call for a new oil boom will be thwarted by Wall Street’s reluctance to approve another drilling binge, shale bosses have warned.
Total US
oil output in Trump’s second term will rise by less than 1.3mn barrels a day, said Rystad Energy and Wood Mackenzie, well below the 1.9mn b/d rise achieved under Joe Biden and much less than in the shale bonanza years in the previous decade.
Executives said investor pressure on companies and the economic realities of a sector always beholden to oil prices would be obstacles to Trump’s quest to launch an era of “American energy dominance”.
“The incentive, if you will, to just drill, baby, drill . . . I just don’t believe that companies are going to do that,” said Wil VanLoh, chief executive of private equity group Quantum Energy Partners, one of the shale sector’s biggest investors.
“Wall Street will dictate here — and you know what? They don’t have a political agenda. They have a financial agenda . . . They have zero incentive to basically tell the management teams running these businesses to go and drill more wells,” VanLoh said.