Drill, Baby, Drill? Not So Fast, Say Crash-Wary Energy Investors

Bracewell Policy Resolution Group Senior Principal Frank Maisano told Roll Call that the administration’s early moves to satisfy environmental groups and uncertainty around the regulatory environment have influenced oil and gas production decisions, but his prediction is that prices are high enough to drive greater-than-expected boosts in production this year.

“There’s a change in the game in the last week or so with this price run-up,” Maisano said.

Some experts point to a number of non-regulatory factors preventing the industry from rushing into drill-baby-drill mode. Yet, some additional production is almost certain. The US Energy Information Administration recently said that while US crude oil production fell below 11.6 million barrels per day in December, output is forecast to hit 12 million barrels per day this year, and prices could go high enough to convince some producers to take a risk.

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