Photo: iStockphoto
Oil companies, as well as OPEC, led by Saudi Arabia, seem hesitant to drill more oil. So, how will the Trump administration fulfill its promise to increase oil supply and bring down energy prices? Turns out, the "Drill Baby Drill" agenda is about much more than just literal oil drilling.
Market Analyst Phil Flynn spoke about the "Drill Baby Drill" agenda, stating, "It's about streamlining projects. It's about being able to plan for the future, build infrastructure, build pipelines." In short, Flynn says "Drill Baby Drill" is about taking a holistic approach to improving the oil and gas industry.
He says there are major improvements that can be made in the oil and gas industry without actually increasing the amount of oil pumped, pointing to steps like speeding up the process of building refineries and pipelines so that it doesn't take 10 years for those projects to be completed. That would allow crude oil to hit the market faster without requiring more drilling.
Flynn also says that lowering the cost of those projects would help bring down energy costs, which in turn would make everything else quite a bit cheaper.
He also added that at the core of the "Drill Baby Drill" ethos is the fact that the U.S. will need fossil fuels for a long time, and since we can produce them cleaner and more efficiently than anyone else, we should move more in that direction.