The Surge in Oil Industry Growth: Reasons Behind the Boom

Money | July 16, 2024, 11:34 a.m.

Despite a focus on transitioning to renewable energy sources, the American oil industry is experiencing a boom, with record levels of crude extraction from West Texas shale rock. Companies that struggled with financial losses from horizontal drilling and hydraulic fracturing are now seeing profits, with stocks for major players like Exxon Mobil and Diamondback Energy soaring. Market forces, coupled with Russia's war in Ukraine, have contributed to the industry's revival following the challenges of the Covid-19 pandemic. Oil prices have remained high at around $80 a barrel since 2021, indicating a slower and bumpier transition to renewable energy and electric vehicles than previously anticipated. The article underscores the resilience of the oil industry and the ongoing influence of traditional energy sources despite efforts to shift towards more sustainable alternatives.