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The top reason domestic energy production hasn’t ramped up isn’t Joe Biden’s green energy agenda, according to oil company executives. Instead, it’s a lack of enthusiasm from investors.
A majority of oil and gas executives surveyed by the Federal Reserve Bank of Dallas this month pointed to pressure from investors as the top obstacle to growth. Less than 10% blamed government regulation.
“We are maintaining discipline in capital spending to maintain great internal rates of return,” said one executive at an unnamed exploration and production firm, referring to profits from earlier investments.
The Dallas Fed survey comes at a moment of fierce political debate over rising gas prices and overall high inflation, with Republicans blaming higher fuel costs entirely on Biden.
Republicans, including some of Congress’ largest recipients of oil and gas donations, have swarmed to defend the industry, falsely accusing Biden of “destroying” America’s energy industry and demanding the president “unleash” domestic oil and gas. On Wednesday, they once again condemned the administration’s pause on new federal leasing and permitting and Biden’s early decision to rescind a key permit for the controversial Keystone XL pipeline.
But when asked at a congressional hearing this month about the impact of Biden’s leasing pause, Colette Hirstius, senior vice president of oil giant Shell, said, “I do not think that not having lease sales has raised the costs to consumers.”
Biden’s critics have ignored the fact that Wall Street investors are pressuring U.S. drillers to limit production amid record prices.
More than half — 59% — of the 139 executives surveyed by the Dallas Fed listed investor pressure as the primary reason producers are keeping production down.
Oil And Gas Executives Say It's Not Joe Biden Holding Back Domestic Production
Investors think they can make more money without paying for new exploration and production.
By
Arthur Delaney
and
Chris D'Angelo
Mar. 23, 2022, 04:43 PM EDT
A majority of oil and gas executives surveyed by the Federal Reserve Bank of Dallas this month pointed to pressure from investors as the top obstacle to growth. Less than 10% blamed government regulation.
“We are maintaining discipline in capital spending to maintain great internal rates of return,” said one executive at an unnamed exploration and production firm, referring to profits from earlier investments.
The Dallas Fed survey comes at a moment of fierce political debate over rising gas prices and overall high inflation, with Republicans blaming higher fuel costs entirely on Biden.
Republicans, including some of Congress’ largest recipients of oil and gas donations, have swarmed to defend the industry, falsely accusing Biden of “destroying” America’s energy industry and demanding the president “unleash” domestic oil and gas. On Wednesday, they once again condemned the administration’s pause on new federal leasing and permitting and Biden’s early decision to rescind a key permit for the controversial Keystone XL pipeline.
But when asked at a congressional hearing this month about the impact of Biden’s leasing pause, Colette Hirstius, senior vice president of oil giant Shell, said, “I do not think that not having lease sales has raised the costs to consumers.”
Biden’s critics have ignored the fact that Wall Street investors are pressuring U.S. drillers to limit production amid record prices.
More than half — 59% — of the 139 executives surveyed by the Dallas Fed listed investor pressure as the primary reason producers are keeping production down.
Oil And Gas Executives Say It's Not Joe Biden Holding Back Domestic Production
Investors think they can make more money without paying for new exploration and production.
By
Arthur Delaney
and
Chris D'Angelo
Mar. 23, 2022, 04:43 PM EDT