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Trump wants more drilling, but the oil market is already saturated

Summary

Despite Donald Trump’s push to expand offshore drilling, oil companies are unlikely to act on new leases in the Gulf of Mexico due to an already over saturated market. Only 20% of active leases in the Gulf are producing oil, with companies hesitant to drill more as increased supply would further depress prices. Industry experts note that economic factors, rather than regulations, are the primary barrier to expansion. Trump's recent executive orders streamline drilling permits and lift restrictions, but analysts say these changes will not significantly increase production. Instead, oil companies are stockpiling leases, often for financial and strategic reasons, rather than immediate extraction. Environmentalists warn that deregulation raises the risk of another Deep water Horizon-scale disaster while failing to meaningfully impact energy prices.

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Environmental Justice
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Environmental Justice
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