Benzinga·2026-01-13 02:18Core Viewpoint - President Trump's aggressive oil production strategy faces significant economic challenges, as highlighted by economist Paul Krugman, who argues that the strategy is not viable under current profit-and-loss conditions [1][2]. Group 1: Domestic Oil Production - Trump's economic ideas include a focus on increasing domestic oil production, encapsulated in the phrase "drill, baby, drill," which he believes will lead to lower energy prices and economic prosperity [2]. - The breakeven price for new drilling in major U.S. shale regions is approximately $62 per barrel, while current oil prices are slightly below this threshold, making new investments unattractive [3]. - Recent attempts by the Bureau of Land Management to auction over 20,000 acres of public land in Colorado for oil and gas drilling received no bids, indicating a lack of market enthusiasm for Trump's oil production vision [4]. Group 2: International Oil Production - The lack of interest in Trump's vision extends to Venezuela, where oil executives have expressed skepticism about investing in the country under current conditions, with Exxon Mobil's CEO labeling it as "uninvestable" [5]. - Chevron Corp. is the only U.S. energy company committed to increasing output in Venezuela, following the capture of President Nicolás Maduro, highlighting a limited response to Trump's international oil ambitions [6]. Group 3: Market Trends - WTI March crude oil futures are currently trading at $59.74, up 0.71% on the day and 4.90% over the past week, driven by escalating tensions in Iran [7]. - The iShares U.S. Oil & Gas Exploration & Production ETF closed at $90.60 per share, down 0.49% on Monday, reflecting a poor performance in Benzinga's Edge Stock Rankings, although it shows a favorable long-term price trend [7].