The phrase “drill, baby, drill” remains a popular slogan. Heavily used during each of Trump’s three presidential campaigns, it continues as a rallying cry for lobbyist groups and politicians who happily print those words on bumper stickers, tee shirts, and myriad swag available for purchase. Even with proposed fast-track permitting and the rollback of policies and regulations, calls for “drill, baby, drill” are running up against market reality.
Economics is the major driver in drilling decisions. Analysts suggest that when oil prices drop below US$65 per barrel, companies start scaling back operations and reducing capital deployment. Below US$60 per barrel, many companies pause drilling altogether. In January, the US Energy Information Administration (EIA) forecast benchmark Brent crude oil prices will fall from an average of US$81 per barrel in 2024 to US$74 per barrel in 2025 and US$66 per barrel in 2026. The EIA predicts falling prices mainly because of growing production in countries outside OPEC+ and reduced demand. In fact, the EIA forecasts production to outpace consumption, increasing global oil inventories.
Oil and gas executives have begun to speak openly about production declines. During the 2025 CERA Week conference in March, Vicki Hollub, chief executive of (CEO) of Occidental Petroleum projected that US oil production would peak between … CLICK HERE to continue reading this article in the April issue of Gas Compression Magazine.
