this post was submitted on 31 Jan 2025
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U.S. President Trump wants more drilling, but the oil market is already saturated with hundreds of idle oil leases sitting untapped in the Gulf of Mexico (grist.org)
submitted 1 day ago by [email protected] to c/[email protected]
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Of the 2,206 active leases in the Gulf of Mexico, only a fifth are producing oil, according to records from the Bureau of Ocean Energy Management, which regulates offshore drilling. Oil industry executives and analysts say the current number of 448 oil-producing leases is unlikely to grow significantly, even if Trump makes good on promises to expand leasing opportunities and expedite drilling permits.

The market is saturated with oil, making companies reluctant to spend more money drilling because the added product will likely push prices down, cutting into profits.

“It’s not the regulations that are getting in the way, it’s the economics,” said Hugh Daigle, a professor of petroleum engineering at the University of Texas in Austin. “It’s true that there are a bunch of undeveloped leases in the Gulf, and it’ll stay that way if we continue to see low or stagnant oil prices.”

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[–] Soulg 8 points 1 day ago (1 children)

Trump is an idiot who doesn't know what he's doing, his supporters are equally stupid and were told that we weren't drilling almost any oil and believed it implicitly. Therefore Trump has to drill more oil. Because more oil good

[–] [email protected] 2 points 6 hours ago

TRUMP is an idiot. Unfortunately his handlers are not.