They keep saying the oil industry is being strangled by Washington red tape. Thousands of drilling permits sitting on desks, unused, collecting dust because of the evil feds and their love for solar panels. That’s the bumper sticker version.
One keyboard warrior even posted: “Until our President opens permitting and takes away the handcuffs for drilling. Corporations had nothing to do with that.”
Well, hold my diesel.
Here’s the reality: over 9,000 drilling permits have been approved on federal lands under the Biden administration, and they’re not being used because oil companies are doing what oil companies do best—watching the math, not the headlines.
See, it’s not just about having a permit. It’s about whether it’s worth spending $7 to $12 million to drill a new well, according to Halliburton’s latest forecast. That’s assuming you can even get the steel casing and drilling equipment, which—thanks to Trump’s tariffs on imported steel, now comes with a 25% extra bill attached. That alone has jacked up rig costs by as much as $400,000 per well.
And what’s the price of oil? WTI is hovering under $60 a barrel. That’s way below the comfort zone. Most U.S. producers won’t start poking holes in the ground unless prices are at or above $65, and really they prefer $70+. Below that, they’d be losing money faster than a Vegas tourist at a rigged roulette table.
Meanwhile, OPEC+ is pumping like there’s no tomorrow, quietly ramping up production, keeping global crude prices low, and undercutting any incentive for U.S. companies to jump back into the fray. Even the Saudis say they will increase oil pumping by 1 million barrels a day. They’re playing the long game—flood the market, let the American drillers sweat, and keep the balance of power.
So next time someone tells you oil companies can’t drill because of some “liberal war on oil,” remind them it’s not politics—it’s cold, hard economics. It’s the price of steel. It’s the price of crude. It’s the global market playing chess while Americans are still yelling about checkers.
Yes, the permits are there. Yes, they can drill. No, they’re not doing it. Why? Because no oil company drills for patriotism. They drill for profit. And when the numbers don’t add up, the rigs stay parked.
Corporations have everything to do with that.
Factoid: U.S. Oil Rig Count Then and Now
As of May 9, 2025, the United States is operating 474 active oil rigs, according to Baker Hughes.
In contrast, two decades ago, in May 2005, the U.S. had approximately 1,276 active rigs.
This represents a 63% decrease in active rigs over the past 20 years.
Key Takeaways:
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Current Rig Count (May 2025): 474 active oil rigs
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Rig Count (May 2005): Approximately 1,276 active rigs
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Change Over 20 Years: 63% decrease in active rigs
This significant decline reflects shifts in the energy industry, including advancements in drilling technology, changes in market dynamics, and evolving energy policies.