Why U.S. Oil Companies Are Not Plugging the World’s Energy Gap
American producers are under pressure from investors to keep spending in check, and they are wary of drilling more wells because they are not sure oil prices will stay high.
American producers are under pressure from investors to keep spending in check, and they are wary of drilling more wells because they are not sure oil prices will stay high.
The war with Iran is preventing huge amounts of oil from flowing out of the Persian Gulf, but the prices that many people track don’t fully capture the scale of the disruption.
A gallon has climbed to nearly $6 in the state, about $2 above the national average.
Fatih Birol, the leader of the International Energy Agency, said the Iran war was a bigger crisis than the two oil shocks in the 1970s combined.
Chevron has signed an initial agreement to start working in Syria, weeks after the Syrian government seized control of key oil and gas fields in the north of the country.
The secretary of state said that a military “quarantine” on some oil exports would stay in place to put pressure on the country’s acting leadership.
Secretary of State Marco Rubio said the Trump administration would work with Venezuela’s acting leader, Delcy Rodríguez, a Maduro ally, to get foreign investment into the oil industry.
Israel’s granting of an export permit is the final step to allow the deal, first announced by energy companies in August, to proceed.
In public, the White House says it is confronting Venezuela to curb drug trafficking. Behind the scenes, gaining access to the country’s vast oil reserves is a priority.
The U.S. seizure of a vessel off Venezuela is likely to squeeze the country’s government, but do little to counter the tankers that secretively move oil from sanctioned countries.