President Donald Trump calls on oil producers for “drilling, child, exercise.” American and gas investors may not be on board With a plan.
“At the moment, at low oil prices, I think we will start to see how many companies are starting to return to its capital expenditure,” said Clark Williams-Derry, an energy analyst at the Institute of Energy Economics and Financial Analysis.
The US is already producing more oil than any other nation in history. In December 2024, oil and gas companies in the US produced over 13.49 million barrels of oil per day. This is a high versatile production, according to Administration records of American energy information.
High production rates usually reduce prices, which benefits consumers. But if the prices fall too far, affecting producers' profits, they can stop drilling.
Most Americans see oil prices reflected at the price they pay for gallon at gas stations. The retail price of gasoline changes on the basis of seasonal trends and other factors. On March 24, 2025, the average nationwide price of regular unleaded gasoline was around USD 3.10 per gallon, according to Gasbudda data. According to Gasbuddy data, it is far below the highest average average price of over 5 USD per gallon, in June 2022.
According to the forecasts of the US information administration in the US, the US will fall by 11 cents in 2025 and 19 cents in 2026.
According to EOI, oil prices in the US accounted for about 52.6% of the average retail gasoline price in 2023, and the latest available data.
The future landside trajectory is a key problem of investors in the oil and gas industry.
On March 24, 2025, the price of a spot American benchmark for crude oil, West Texas Intermediate, floated below USD 70 for a barrel. Analysts from S&P Global Commodity Insights expect WTI to an average of $ 66 per barrel in 2025.
Crude oil prices, January 2025 to this day.
Lower oil prices affect the profitability of oil and gas companies, which they must sell on global markets.
Manufacturers surveyed by the Federal Reserve Bank in Dallas in March 2024 reported that they would have to sell oil at “Breakeven” prices of around USD 64 per barrel to make profits from drilling new wells.
“This is a real challenge to get oil prices at the level with which producers feel comfortable, but also with which consumers can live,” said Williams-Derry.
Watch video Above, to learn more about Trump's energy policy