Oil CEO’s Admit They’re Not Drilling Because of Investors, not Government

The Dallas Federal Reserve surveyed executives of American oil companies to find out why they weren’t drilling to meet demand among soaring gas prices. The response is unsurprising. Their investors want profits, not lower gas prices. 

Of the CEO’s surveyed, “Nearly 60% cited “investor pressure to maintain capital discipline” as the primary reason oil companies weren’t drilling more despite skyrocketing prices, according to the Dallas Fed survey.

Only 11% cited environmental, social or governance issues; 8% said they had difficulty getting financing; 15% cited other reasons.”

It’s worth noting that “investor pressure to maintain capital discipline” is Wall Street lingo for “profits.”

Republicans continue to blame President Biden even though he increased public land drilling permits by 34% (more than any year under any administration since George W. Bush.) Also, 90% of land drilling is done on privately owned land, not federal.

Oil Company’s Profits are Booming as You Pay Their Investors

The House Committee on Energy & Finance reported in August on the record profits of America’s largest publicly traded oil companies highlighting Exxon’s largest quarterly profit of any oil company in history.

“While gas prices have begun to fall, the letters come as drivers continue to bear the burden of higher-than-average fuel costs at the same time as the four major oil companies announced quarterly earnings of nearly $50 billion combined. Exxon alone reported a profit of $17.9 billion – the highest quarterly profit reported by any oil company in history – while Chevron reported $11.6 billion, Shell reported $11.47 billion, and BP reported $8.45 billion. These are record-shattering figures for the companies and the result of them reaping enormous profits on the backs of hardworking families.”

Oil Companies Are Betting on Republicans Doing Nothing to Stop Them

Thus far, oil companies have donated nearly $30 million to Republicans and just $5.9 million to Democrats for the 2022 election cycle according to OpenSecrets. House minority leader Kevin McCarthy has received nearly half a million dollars alone.

Big Oil’s Investment in Republicans Pays Off

When the House presented a clean bill to stop price gouging at the pump, no Republicans voted for it. And now, big oil is betting big on Republicans to give them a free pass to profits from American consumers.

Sources

CBS News: U.S. producers reluctant to drill more oil, despite sky-high gas prices

House.gov: Record oil company profits

OpenSecrets: Oil campaign donations to Republicans