Wall Street expects U.S. oil and gas companies to keep a lid on spending in 2025 and keep their focus on generating shareholder returns, despite calls by President Donald Trump to 'drill…
Wall Street expects U.S. oil and gas companies to keep a lid on spending in 2025 and keep their focus on generating shareholder returns, despite calls by President Donald Trump to "drill, baby, drill."
Big Oil begins reporting fourth-quarter results this week, and outlooks for the coming year should reflect the dissonance between Trump's oil and gas-maximizing agenda and investor expectations. The industry has pushed in recent years to drive down costs and increase production by using more efficient technology rather than drilling many new wells.
Producers also must contend with lower global oil prices as the post-pandemic demand rebound runs its course and as China's economy struggles.
Benchmark Brent crude oil prices LCOc1 are projected to average $74 per barrel in 2025, down from $81 in 2024, according to the U.S. Energy Information Administration.
Overall, for the U.S. exploration and production sector, analysts at Scotiabank expect companies to target up to 5% production growth this year, and flat to slightly lower year-over-year capital expenditures.
The exception is Exxon Mobil, which plans a large increase in production. The largest U.S. oil company intends to more than triple its production in the Permian, the top U.S. shale field, and pump 1.3 million
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