Nope, wrong. This reporting is from 4 months ago:
Gasoline prices have surged to seven-year highs and Wall Street banks are warning that $100 or even $120 oil is on its way. Yet US oil companies are in no rush to come to the rescue, leaving the White House facing pressure from its own party to intervene in energy markets.
What's changed is that, under immense pressure from Wall Street shareholders, oil companies are finally trying to live within their means. Even though crude has surged above $85 a barrel amid roaring demand, drillers are only gradually adding supply.
Normally, the best cure for high prices is high prices, which incentivize more supply. And yet, even though US oil prices have surged by more than 65% this year,
US oil production is about 14% below the levels of the end of 2019, before Covid erupted.
"Stop spending like drunk sailors. That's the message from shareholders," said Pavel Molchanov, an analyst at Raymond James.
That message was heard loud and clear. Despite higher prices, 50 of the largest oil companies have increased their annual budgets by just 1% relative to their initial plans, according to Raymond James. Instead of plowing money into expensive drilling projects, the oil-and-gas industry is focused on returning cash to shareholders.
"It's not the government that is banning them from drilling more. It's pressure from their shareholders," said Molchanov.
US oil companies used to ramp up production at even the slightest hint of higher prices.
www.cnn.com