Big Oil's blowout -- The Observer

[erronis]

https://observer.co.uk/news/article/big-oils-blowout

US oil majors and Saudi Arabian megaprojects are getting hammered by Trump’s drive to bring down oil prices

Oil majors that collectively donated more than $75 million to Donald Trump’s re-election campaign are midway through a grisly earnings season. Prices have fallen another $4 this week to below $60 a barrel, after a data release showed that the US economy contracted in the first quarter.

So what? If prices go much lower, companies operating in wide swathes of America’s shale patch would lose money drilling new wells. Big Oil’s full-throated support for the president’s plan to “drill, baby, drill” now appears ill-conceived.

Global glut. Markets are currently pricing a flood of the black stuff due to

a global trade war denting demand;
looser drilling restrictions and sustained high production in the US; and
expectations the Opec+ group of oil producing countries will increase supply.

It could get worse. In the case of a US recession the energy consultancy Rystad forecasts the price of Brent crude will fall to $52 a barrel by the end of the year. This would be below the break-even mark for behemoths such as Chevron and Occidental Petroleum (Oxy).

. . .

[SWBTATTReg]

1. So in effect, by doing these things, tRUMP has actually caused the Economy to contract instead, lessening the demand

for oil, thus lessening the 'drill for oil' baby mantra.

Idiot. Nothing this idiot does makes sense.

[TxGuitar]

2. How did Big Oil not see this coming?

Doesn't seem like they have sound leadership.

[erronis]

3. The last paragraphs of this article:

What’s more… Trump’s plan to boost oil production and crater prices is just one leg of an economic strategy that is verging on incoherent. His treasury secretary, Scott Bessent, has tried to give it some structure by proposing a “3-3-3” plan that aims to

grow GDP by 3 per cent a year;
reduce the US deficit to 3 per cent; and
increase oil production by an extra 3 million barrels per day.

Experts say it’s looking a lot more like “2-6-0”: growth below 2 per cent (or worse), a deficit of close to 6 (so much for Doge), and, as production flatlines, close to zero extra barrels of oil.