Dear editor:
Regarding Sunday’s Cowboy State Daily article: Oil And Gas Producers Want To Chill Despite Push To Drill, Baby, Drill.
From the article: “In its April 11 energy survey, the Tenth Federal Reserve District — which includes Wyoming — found the oil producing firms surveyed reported that oil prices needed to be on average $65 per barrel for drilling to be profitable, and $85 per barrel for a substantial increase in drilling to occur.”
Mr. Trump is decidedly on the right track with his agenda to cut regulation, taxes and spending (and he must, of course, have prompt, unified support from both the House and the Senate).
However, “drill, baby, drill” will not occur at suppressed prices, and increased drilling and production will tend to suppress price.
Drilling and production will only increase when oil price increases, and that will happen only when demand grows.
Demand will only grow with a strengthened & growing economy.
Thus, if President Trump wants to boost U.S. oil (and gas) production, he and Congress must facilitate strengthening the economy by reducing regulatory barriers, cutting federal spending and cutting federal taxes.
The rising tide of a strong and growing economy will lift all boats - producers, consumers and the federal treasury will all benefit by a robust economy and the concomitant robust oil & gas sector.
But, as Mr. Trump doubtless knows, it will take more than repeating an aspirational campaign slogan.
Sincerely,
John Hoak
Big Horn, Wyoming
