Exxon executive: US oil producers are unlikely to switch to "drill baby, drill" mode

Ron Bousso & Robert Harvey

LONDON, November 26 - U.S. producers of oil and gas are unlikely to increase production dramatically under President-elect Donald Trump, as companies remain focused upon capital discipline, said a senior Exxon Mobil executive on Tuesday.

Liam Mallon is the head of Exxon’s upstream division. He told the Energy Intelligence Forum in London that "we're not going see anyone in a 'drill baby, drill'" mode.

He said that a radical change in production is unlikely, because most, if no one else, are focused on the economics.

The growth rate will be naturally limited if you maintain the discipline and drive the quality.

He added that easing up on the processing of land permits could boost production in the short term.

During the campaign, Trump promised to increase domestic oil and gas production. Reports on Monday said that Trump's transition team was putting together an energy package which would be released within a few days of him taking office.

After a boom in shale-oil production that saw the United States pump over 13 million barrels of oil per day early this year, it is no surprise that America is now the top oil producer on earth. (Reporting and editing by Louise Heavens, Jason Neely, and Ron Bousso)

(source: Reuters)