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After years of battling regulations imposed by the Biden Administration on the oil industry, Texans are cautiously optimistic about what the four years of Trump's second administration will hold. What will "drill baby drill" mean for us?
While more cheap oil would be great for consumers, there are problems to consider when it comes to drilling too much. Jay Young, Founder and CEO of King Operating Corporation, told KTRH, "It's gonna be good until it's not. Which means, until he puts out so much oil that prices go down to twenty or thirty bucks a barrel, and everybody loses their jobs."
Young stressed that it's important to maintain the proper supply and demand ratio in the oil markets because drilling for oil is expensive, and if investors can't get their money's worth, they simply won't drill at all.
Young said, "What I'd like to see Trump do is just take it easy on the industry, and not open up the floodgates, because the infrastructure is just not there." He says the biggest priority should be building more refineries, and making it easier to move oil to those refineries, but that could take years.
One thing that could provide a quick and powerful boost to the Texas oil and gas industry would be to lift Biden's ban on liquid natural gas exports out of Texas, which Young is confident that Trump will do.