LONDON – US oil and gas companies are unlikely to make significant production increases under president-elect Donald Trump, as the industry remains focused on capital discipline, according to Liam Mallon, head of Exxon Mobil’s upstream division.
Speaking at the Energy Intelligence Forum in London on Tuesday, Mallon stated, “We’re not going to see anybody in ‘drill, baby, drill’ mode.” He emphasized that the industry’s focus on economic factors and disciplined capital management will likely prevent any radical shifts in production.
“A radical change in production is unlikely because the vast majority, if not everybody, is focused on the economics of what they’re doing,” Mallon explained. “Maintaining discipline, driving quality, and ensuring robust data will naturally limit growth rates.”
Trump, who is set to take office on January 20, pledged during his campaign to increase US oil and natural gas output.
His transition team has been preparing a broad energy package aimed at boosting production, which could include streamlining land permitting processes to provide a short-term boost to output.
The United States became the world’s top oil producer earlier this year, surpassing 13 million barrels per day thanks to the boom in shale oil production. It also leads the world in natural gas production.
BP CEO Murray Auchincloss echoed Mallon’s sentiment at the conference on Monday, expressing optimism that the Trump administration would expedite permitting for energy projects.
Exxon Mobil’s recent $60 billion acquisition of Pioneer Natural Resources solidified its position as the largest shale producer in the US.
Mallon stated that Exxon expects its oil production in the Permian Basin to exceed 2 million barrels per day, with growth continuing beyond that level, though at a more measured pace.
“We see growth beyond two million barrels, probably for a couple of years, but not at a continuous rate,” he added, noting that production in the region could continue to rise through 2030.
