Shale Needs More Than Trump’s Tax Breaks to Boost Output
A new deduction for capex may lead to lower oil prices and crimp cash flow, Citigroup says.
A pump jack in Midland, Texas. A Citigroup Inc. analysis says the White House may need to offer more than tax breaks to incentivize shale production.
Photographer: Anthony Prieto/BloombergWelcome to our guide to the energy and commodities powering the economy. Today, reporter David Wethe explores whether the Trump administration’s proposed tax breaks for US shale producers offer enough incentive to boost output. Meanwhile, European shoppers looking for coffee are finding empty shelves instead.
Shares of EOG Resources Inc. suffered their biggest drop in more than a year after the US shale stalwart forecast lower-than-expected free cash flow for 2025 despite mostly steady spending and production growth.