"While President Donald Trump starts his new year opening Venezuela to U.S. oil companies and pining over Greenland's potential oil and critical mineral reserves, American shale producers are increasingly miffed over the commander-in-chief's focus on international energy as opposed to their declining domestic profits. Although the U.S. is, in fact, churning out barrels of oil near all-time highs, Trump's "Drill, baby, drill" ethos is ringing hollow amid weaker oil prices and waning drilling activity."
"The U.S. benchmark for crude oil is sitting just under $60 per barrel, the threshold below which American oil producers struggle to profit and justify new activity. And the amount of active oil drilling rigs has plunged about 15% in a year as of Jan. 16. Despite all that, previous drilling activity and oilfield efficiency gains have pushed domestic oil production near world-leading, all-time highs of 13.8 million barrels a day-a stubbornly high level that's contributing to lower oil prices."
President Donald Trump's energy focus emphasizes opening foreign sources such as Venezuela and Greenland while urging U.S. companies to invest in Venezuelan oil assets. American shale producers face falling profits as U.S. crude trades just under $60 per barrel, the rough breakeven for many domestic operations. Active drilling rigs have declined about 15% year-over-year, yet past drilling and efficiency gains have pushed U.S. production toward 13.8 million barrels per day. Higher global supply, including increased OPEC output and robust U.S. output, is keeping prices low. Producers welcome expedited project approvals and relaxed environmental rules even as domestic drilling activity weakens.
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