President Donald Trump is advocating for increased oil production with his “drill, baby, drill” stance, but not all U.S. oil and gas investors are aligned with this approach.
“With oil prices currently low, many companies are expected to cut back on capital spending,” said Clark Williams-Derry, an energy finance analyst at the Institute for Energy Economics and Financial Analysis.
The U.S. has already reached record levels of crude oil production. In December 2024, domestic oil firms pumped more than 13.49 million barrels per day, marking an all-time high, according to the U.S. Energy Information Administration (EIA).
While greater production typically leads to lower fuel prices, benefiting consumers, a significant drop in crude prices can reduce profitability for producers, discouraging further drilling.
Gasoline prices mirror these fluctuations. As of March 24, 2025, the national average for a gallon of regular unleaded gas stood at around $3.10, according to GasBuddy—far below the peak of over $5 per gallon recorded in June 2022. The EIA predicts further declines of 11 cents in 2025 and 19 cents in 2026.
Crude oil remains a key factor in fuel costs, accounting for approximately 52.6% of the average retail gasoline price in 2023. On March 24, 2025, the price of West Texas Intermediate (WTI) crude hovered below $70 per barrel, with analysts at S&P Global Commodity Insights projecting an average of $66 per barrel for the year.
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