I don't think any favorable regulations will really help these companies like chevron and bp. They already have the personnel and departments in place to navigate them globally. They'll help family owned companies and/or start ups doing one rig. Or that's at least my perspective. Could absolutely be wrong, though.

Which brings to why trump is doing this. He wants lower energy prices. Input costs: rigs, octg, etc., are settling from a few years ago but are still up. More smaller companies and more rigs means more demand so costs could creep back up. Tariffs are also expected to raise pricing. OCTG has risen ~5%.

Lower commodity prices and increased input costs give no reason for operators to abandon their recent stint of capital discipline.

The focus on acreage and runway are also no reason to.

So, if your 3-5 year plan is flat activity wise, but shareholders still expect increasing stock prices and you're likely still staffed from expansion….layoffs…

Throw in continued advancements with AI and whatever else comes out over the next few years on top of the shareholder pressure for growth and that will continue to mean run leaner as well

Yep. Was just going to edit my post to add increase efficiency from technology

Petrino1 said:

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gougler08 said:

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cajunaggie08 said:

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bp doing a 5% reduction of jobs and sending some roles to Malaysia, India, and Hungary

https://www.chron.com/business/article/houston-bp-layoffs-20040507.php

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I just assume all O&G majors will be doing RIF round 2 here in 2025

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Just curious, why is this the case? Oil prices have been hovering around $70-80 for the past 2 years or so. With Trump in office, oil companies will presumably get more favorable treatment/regulations for the next 4 years.

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It doesn't how many regulations are removed and leases opened up if the demand isn't high. The majors are international companies and while the US is a large chunk of operations it isnt the majority of their operations so they only care about the price of crude. If smaller players are going to add to to the supply of crude on the market to boost the American market share then the price will go down and therefore the stock price for the majors will go down.

It's a commodity. Commodity companies make more money when there is less supply. The cost benefit of fewer regulations is far lower than the upside from the price.