1.Despite high oil prices, U.S. drillers are hesitant to ramp up production due to extreme market and geopolitical uncertainty.

2.Companies prefer a wait-and-see approach, using current cash flows to repair balance sheets rather than commit to new drilling.

3.Industry fears prices could spike too high, triggering demand destruction and longer-term instability, especially with ongoing disruptions like the Strait of Hormuz.

https://oilprice.com/Energy/Crude-Oil/Drillers-See-Triple-Digit-Crude-and-Hit-the-Brakes.html

9 minutes ago, Alan Zweibel said:

1.Despite high oil prices, U.S. drillers are hesitant to ramp up production due to extreme market and geopolitical uncertainty.

2.Companies prefer a wait-and-see approach, using current cash flows to repair balance sheets rather than commit to new drilling.

3.Industry fears prices could spike too high, triggering demand destruction and longer-term instability, especially with ongoing disruptions like the Strait of Hormuz.

https://oilprice.com/Energy/Crude-Oil/Drillers-See-Triple-Digit-Crude-and-Hit-the-Brakes.html

9 minutes ago, Alan Zweibel said:

1.Despite high oil prices, U.S. drillers are hesitant to ramp up production due to extreme market and geopolitical uncertainty.

2.Companies prefer a wait-and-see approach, using current cash flows to repair balance sheets rather than commit to new drilling.

3.Industry fears prices could spike too high, triggering demand destruction and longer-term instability, especially with ongoing disruptions like the Strait of Hormuz.

https://oilprice.com/Energy/Crude-Oil/Drillers-See-Triple-Digit-Crude-and-Hit-the-Brakes.html

Since the drillers get paid to drill the well but the oil explorers

own the discovered oil , it' s the explorers who decide .

The drillers get paid either way .

4 minutes ago, Jim Blue said:

Since the drillers get paid to drill the well but the oil explorers

own the discovered oil , it' s the explorers who decide .

The drillers get paid either way .

This comes from oilprice.com. They're not going to be posting clickbait. They enjoy an excellent reputation. The bigger companies do both drilling and exploration.

This selection from the article should make clear what is intended:

"According to the latest Dallas Fed Energy Survey, the range of WTI profitable drilling price levels for the oil patch is between $62 per barrel for non-Permian shale, $68 per barrel for conventional oil, and $70 for parts of the Permian. Yet only 21% of the survey respondents said they planned to significantly increase the number of wells they plan to drill this year

And they cite this article for the Wall Street Journal as evidence:

Trump Says the Energy Shock Will Be Short-Lived. CEOs Paint a Scarier Picture.

Some oil and gas executives are privately expressing frustration with the administration’s optimistic messaging and say the disruption is already far-reaching

https://archive.ph/i5eHC#selection-577.0-581.158