Why “Drill, Baby, Drill” Isn’t Taking Us Anywhere

In his latest article in Forbes, energy analyst Robert Rapier explains why “Drill, Baby, Drill” is unlikely to have a substantial impact on oil production. “There’s a total disconnect between Trump’s desire to lower gasoline prices and any incentive for producers to drill more,” he writes.

Rapier goes on to quote Liam Mallon, President of ExxonMobil’s Upstream division, who recently reinforced this sentiment, stating:

“A radical change in production is unlikely because the vast majority, if not everybody, is primarily focused on the economics of what they’re doing.”  Mallon’s perspective reflects a broader industry trend—oil producers remain focused on financial sustainability rather than short-term production boosts.

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We need to ask ourselves which seems more likely: Big Oil’s knee-jerk reaction to Trump’s political rhetoric, or their approaching the matter rationally, opting to do everything possible to remain profitable.