Thanks to a mix of events, from the Russian invasion of Ukraine to the U.S. economic recovery, fossil fuels are showing surprising resilience, despite President Biden’s push to transition to clean energy and the industry’s own history of boom-bust investing and heavy reliance on debt.
U.S. production of natural gas—Chesapeake’s focus—has hit record levels. The country’s crude oil production remains shy of the 2019 level but is otherwise at a peak. Exports of both gas and crude are hitting new highs, easily outpacing overseas sales of aircraft, pharmaceuticals, food and cars. Exxon Mobil Corp.’s shares rose 80% last year.
The Biden administration has limited drilling on federal lands, but oil and gas companies have tapped the nation’s vast private shale reserves to drive production higher.
As surging global demand for U.S. oil and gas has fueled high profit margins for producers, Mr. Biden has accused them of profiteering during a crisis. They take a different lesson from their fortune. “What’s really happened is the world has realized there is a need for hydrocarbons in energy policy,” said Domenic Dell’Osso, Chesapeake’s chief executive.Oil and Gas are Back and Booming – WSJ