RBN Energy CEO says you can’t have lower oil prices and boost production: ‘It doesn’t make any sense’
April 14, 2025
By Julie Coleman
In a Monday interview with CNBC’s Jim Cramer, Rusty Braziel, Founder and Executive Chairman, at RBN Energy, pointed out the contradiction in Donald Trump’s campaign promises of both boosting oil production and lowering oil prices.
“You can’t have massive increases in drilling and production while also expecting lower oil prices — it just doesn’t add up,” Braziel explained.
Read the full article and watch the video here https://www.cnbc.com/2025/04/14/rbn-energy-ceo-says-you-cant-have-lower-oil-prices-and-higher-production.html
He noted that U.S. Energy Secretary Chris Wright, a former oil executive, faces a difficult challenge. While Wright knows how to increase output, Braziel said that low oil prices make it hard for companies to justify drilling, regardless of how many new sites are opened. “At these price levels, it just doesn’t make financial sense — the return on investment isn’t there,” he said.
Oil prices have dropped sharply due to concerns about a potential recession. Earlier this month, some OPEC+ nations agreed to ramp up production, which added further pressure on prices. Still, prices hovered around $60 on Monday, despite OPEC lowering its demand outlook for 2025 and 2026, partly because Trump’s tariff policies could slow global economic growth.
Braziel acknowledged that if prices fall to $50, drilling activity will likely suffer, though he noted that $60 is still profitable for many producers, especially in the Permian Basin. However, he said many of RBN Energy’s clients are choosing to wait before making new investments due to ongoing uncertainty.
“The market is frozen — like a deer in the headlights — and that won’t change until we see more stability,” he said.
