Why US Oil Companies Are Holding Off on Drilling New Wells

‘Oil companies are hesitant to make such big investments over what may be a temporary price spike,’ economist Paul Mueller said.

Workers change pipes at a gas drilling rig exploring the Marcellus Shale outside Waynesburg, Pa. Mladen Antonov/AFP via Getty Images

The war in Iran, which continues to trap about one-fifth of the world’s oil supply in the Persian Gulf, is seen by many as a golden opportunity for American oil companies to expand their position as the world’s leading energy producers. 

“We’re seeing a combination of trying to reopen the Strait [of Hormuz] while simultaneously recognizing that there are going to be alternative routes to get oil and gas to market, including expanding production in new places and expanding production in the United States,” Caleb Jasso, policy expert at the Institute for Energy Research, told The Epoch Times. “The world as a whole is really reevaluating global energy supply chains and the need for a greater level of diversification.”