U.S. Oil Production Will Maintain Low Growth in 2023: EOG Resources

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U.S. oil production will maintain a low growth rate in 2023, an industry leader has said.

Ezra Yacob, chairman of EOG Resources Inc., told analysts his prediction during a third-quarter earnings call.

The number of oil rigs, fracking spreads and workers indicates a low growth rate in the near future, he said.

Moreover, fewer companies have the capacity to produce oil after the pandemic and companies are more cautious about investing more in this sector.

“I think coming out of the pandemic, we had consolidation across the industry. … You have fewer companies left, and those companies that have the size, the scale, the balance sheets, things of that nature to be able to continue drilling and operating,” he said. “And the majority of these companies are drilling and investing in a more disciplined way than was in favor before the pandemic.”

Yacob thinks the trend won’t stop any time soon.

“And frankly, a lot of these things that I’ve talked about aren’t necessarily transitional in nature. Some of these things will continue into 2023 as well,” he explained.

EOG was known as Enron Oil & Gas before it split from Enron in 1999.

Biden to talk to oil companies

Oil production has been recovering from the COVID-19 pandemic since August 2020. However, the pace of oil production is relatively slow, although oil prices rose rapidly after the pandemic.

Oil production has still not reached pre-pandemic levels.

Industry insiders and experts have warned that companies are reluctant to make long-term investments in the fuel industry due to uncertainty in Washington and hostile attitudes towards the industry by the Biden administration.

Weak domestic oil production in America and OPEC+ oil production cuts have kept oil prices high and pushed gasoline prices higher.

Meanwhile, President Joe Biden blamed oil companies and gas stations for high gas prices.

Biden said he would speak directly with oil companies soon.

“I’m working hard to deal with energy prices. I’m going to have a little chat, as they say, with the oil companies pretty soon,” he told the audience at an event in California on Friday.

White House press secretary Karine Jean-Pierre confirmed in October that the Biden administration was in contact with the oil companies.

“The Department of Energy has been in regular contact and held meetings … with these various companies, and they will continue to have these conversations. Members of our team at the White House have also been in close contact,” she said Oct. 17.

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Allen Zhong is a longtime writer and reporter for The Epoch Times. He joined Epoch Media Group in 2012. He mainly focuses on American politics. Send him your story ideas: [email protected]

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