An executive for ExxonMobil said Tuesday that oil firms are not likely to significantly step up production in line with President-elect Donald Trump’s “drill, baby, drill” energy agenda at a conference in London. [emphasis, links added]
Trump repeatedly pledged to unleash U.S. oil production on the campaign trail to bring down energy costs and assert America’s will on global markets, and he has assembled a serious group of energy-focused officials in his cabinet to help lead that effort come January 2025.
However, Liam Mallon, the head of ExxonMobil’s upstream division, told attendees of the Energy Intelligence Forum that the economics of a production surge may not make economic sense for energy companies, according to Reuters.
“We’re not going to see anybody in ‘drill, baby, drill’ mode,” Mallon said.
“A radical change (in production) is unlikely because the vast majority, if not everybody, is focused on the economics of what they’re doing,” Mallon continued. “Maintaining the discipline, driving the quality, driving the information, will naturally limit that growth rate.”
Notably, ExxonMobil is also urging Trump not to pull out of the United Nations’ Paris Climate Accords for a second time when he returns to the White House in January 2025.
U.S. oil production reached all-time highs under the Biden administration despite its regulatory crusade against the industry.
However, Trump is looking to drive production even higher by freeing up fossil fuel infrastructure and resource development across the country.
Scott Bessent, the wealthy hedge fund manager chosen by Trump to helm the Treasury Department, is pushing to increase U.S. energy production by three million barrels of oil per day or equivalent as part of his wider vision for how to deliver strong economic growth for the next several years.
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