Oil companies that drill in West Texas are seeing big wartime profits, but many are holding back on aggressive capital spending, wary of repeating the boom-bust cycles that followed the pandemic when prices collapsed after a drilling surge.
Experts say new exploration takes more than a decade from decision to market. Research can cost hundreds of millions of dollars, and development can take tens of billions.
Exxon Mobil and Chevron posted their lowest annual profits since 2021 in their earnings reports on Friday, a sign that now is not really a time when big oil is looking to make any kinds of sizeable investments in new oil production.
Legal scholars and lawmakers are still trying to come to grips with the potential long-term consequences of the overturning of the Chevron deference, including what it means for state-level regulators.