Trump Promised to ‘Drill, Baby, Drill.’ The New Rigs Are Nowhere to Be Found
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Summary
Six months into his presidency, Donald Trump’s re-election campaign slogan “we will drill, baby, drill” is yet to materialise, with oil output, prices at the pump and exports trailing behind where they were this time last year.
The White House’s push to repeal regulations on the oil and gas sector, incentivise drilling on public lands and axe tax incentives for wind turbines and solar panels is not swaying oil and gas firms.
The oil price is more responsive to global demand and supply dynamics than to domestic policy and posturing, despite the Trump administration’s best efforts, according to Jenny Rowland-Shea, director for public lands at the Center for American Progress, a progressive policy think tank.
The break-even point for drilling new wells is currently near $60 per barrel, before additional costs brought about by elevated tariffs on steel imports for drilling equipment and machinery.
