Experts rip Biden admin as US oil giants bet big on Americas: ‘White House lampooning our own industry’
Chevron, Exxon Mobil to pour 70% of capital into domestic energy projects, pull back from international deals
Exxon, Chevron to focus on oil projects in the Americas
The Schork Group Principal Stephen Schork argues Chevron and Exxon shifting their focus to oil projects in the Americas is an 'excellent sign.'
Oil experts and investors torched the Biden administration for "lampooning" and "coddling" the industry as two of the largest U.S. producers announce they’re pumping more capital into domestic drilling projects.
"It's a potential shot in the arm and a great sign that even though with all the vitriol that has come out of this White House lampooning our own industry while coddling terrorists in Venezuela… we now have a U.S. industry that is once again reinvesting in its domestic industry," founder and editor of The Schork Report, Stephen Schork, said Wednesday on "Mornings with Maria." "And it's a good thing for U.S. jobs, a good thing for the U.S. economy."
Last month, both Chevron and ExxonMobil detailed plans for increased cash flow — at least 70% of their total expenditures — towards projects in the Americas, moving away from big international deals and drilling.
Texas-based Exxon expects to spend anywhere between $23 billion to $25 billion this year, with the hopes of doubling its earnings by 2027. They plan to focus on investments in areas like the U.S. Permian Basin, Guyana and Brazil, according to a press release.
U.S. POISED TO BECOME NET EXPORTER OF CRUDE OIL IN 2023
The Biden administration's "vitriol" towards the U.S. oil industry is "lampooning" domestic production efforts, The Schork Report founder and editor Stephen Schork said Wednesday on "Mornings with Maria." (Fox News)
Chevron’s 2023 budget is up more than 22% from last year, its press release stated, with $14 billion this year going towards consolidated subsidiaries (CAPEX). More than $4 billion of that money will be invested in the Permian Basin.
"I think it's an excellent sign, and it is once again a view of just how great American energy is," Schork said in reaction to the news. "When you do apples to apples, that is to say, when you look at where the February gasoline market trading today was and where it was well before Putin's war in November of 2020, gasoline prices are still $0.75 a gallon higher. So, let's just put that [White House] specious argument to the side."
The Biden administration has claimed that oil companies have "plenty of opportunities" already to drill domestically, citing 9,000 active, but unused, leases. However, even Chevron CEO Mike Wirth called the White House on its bluff, claiming the permitting process involves too much bureaucracy.
US energy needs to be 'affordable, reliable and cleaner': Chevron CEO Mike Wirth
Chevron chairman and CEO Mike Wirth discussed the oil company's growth outlook and Biden's energy agenda on 'Mornings with Maria.'
"I don’t know anything about this 9,000 lease number. I don’t know where it comes from. We don't have anything even approaching a fraction of that," the Chevron exec previously told host Maria Bartiromo. "These things can take a long time. They can be challenged in court, and it is a very bureaucratic process. The idea of permitting reform, which has received a lot of discussion lately, actually, for all types of energy infrastructure, is a good idea, and I think it would be good for our country in order to encourage investment in infrastructure of all types, to find a way to have a proper permitting process that does protect the environment and ensures work is done safely, but doesn't allow people to delay endlessly these kinds of investments."
United Refining Company Chairman and CEO John Catsimatidis also chimed in Wednesday on "Mornings with Maria," calling Wirth’s comments "absolutely correct."
"The EPA is very strategic," Catsimatidis said. "Chevron or our small company can't go out and spend $1 billion to upgrade our refinery unless we know we have a long-term commitment from Washington that we're not going to be the enemies of the people two years from now."
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Washington needs to make 'long-term commitment' to US oil: John Catsimatidis
CEO and Chairman of United Refining Company and Red Apple Group John Catsimatidis reacts to high food and energy prices still plaguing Americans.
In commodities Wednesday, West Texas Intermediate crude futures shed 2.55% to $74.38 a barrel, as gold jumped 0.71% to $1,859.20 an ounce. If an economic recession were to kill oil demand, Catsimatidis argued, the price could come down.
"There's international games being played in the crude oil business," the oil investor explained. "The Saudis cut two million barrels, which is a lot of barrels to cut, but they're also smart people. If it looks like it's going into a deep recession or a deeper recession than they expected, they may not cut any more, because they're dependent on the world economy, too."