Slightly more than half of the drilling executives in a recent survey said they aren’t planning to drill more wells this year, even after the price soared because of the war in Iran.
But another 21 percent said the number of wells they plan to drill this year had “increased significantly,” according to the Federal Reserve Bank of Dallas, which conducted the survey. And 26 percent said their plans have increased “slightly.”
It’s mixed news for the Trump administration, which is pushing for oil companies to drill to bring down the volatile price of oil, which has soared near $100 a barrel at times since the United States and Israel started bombing Iran on Feb. 28 from about $65 two days before. The strikes triggered retaliatory attacks on shipping, which closed the Strait of Hormuz, through which about 20 percent of the world’s oil passes.
Many companies have been reluctant to increase production, despite expected higher prices and profits. They worry that the price could suddenly drop once they’ve spent the money to bring more oil online.
