Shale Is Making Too Much Money to Rescue Biden From Oil Shortage
- U.S. explorers seen raking in record free cash flow this year
- Profits over production hurts Biden’s effort to ease inflation
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America’s right-leaning oil industry has little political will to help President Joe Biden lower energy prices by raising production. But there’s another reason why Texas wildcatters are refusing to help: the status quo is just so profitable.
U.S. oil explorers are making more money than at any time since the shale revolution began over a decade ago, according to Deloitte LLP. And this may just be the beginning. Free cash flow, the key metric watched by investors, probably will increase by 38% next year, presuming oil prices remain elevated, according to Bloomberg Intelligence.