Trump's 'Drill, Baby, Drill' Call Meets Oil Companies' Response: 'We Can't' at $55 Crude
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Source: Benzinga
Trump's Energy Agenda: Upon taking office in January 2025, Donald Trump emphasized a pro-oil production agenda, declaring a national energy emergency and promising to boost domestic drilling to combat inflation and high energy prices.
Impact of Low Oil Prices: By mid-December 2025, oil prices fell to around $55 per barrel, leading to concerns that many U.S. oil producers, especially smaller companies, may struggle to remain profitable as their breakeven costs exceed current market prices.
Market Reactions: The Energy Select Sector SPDR Fund (XLE) experienced a significant drop, reflecting broader bearish sentiment in the oil market, with analysts noting that only larger firms can sustain production at lower prices.
Future Outlook: Analysts suggest that while the current market dynamics indicate a surplus, there is potential for oil prices to rebound, especially if positive developments, such as a peace deal in Ukraine, materialize.
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Analyst Views on EOG
Wall Street analysts forecast EOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EOG is 135.56 USD with a low forecast of 114.00 USD and a high forecast of 161.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 112.490
Low
114.00
Averages
135.56
High
161.00
Current: 112.490
Low
114.00
Averages
135.56
High
161.00
About EOG
EOG Resources, Inc. is a crude oil and natural gas exploration and production company. The Company explores, develops, produces, and markets crude oil, natural gas liquids (NGLs) and natural gas primarily in major producing basins in the United States, the Republic of Trinidad and Tobago (Trinidad) and, from time to time, selects other international areas. Its operations are located in the basins of the United States with a focus on crude oil and natural gas plays. It is focused on the Wolfcamp, Bone Spring, and Leonard plays. The South Texas area includes the Eagle Ford play and the Dorado gas play. It holds approximately 535,000 total net acres in the Eagle Ford play and approximately 160,000 net acres in the Dorado gas play. In Trinidad, the Company, through its subsidiaries, including EOG Resources Trinidad Limited, holds interests in the exploration and production licenses covering the South East Coast Consortium (SECC) and Pelican Blocks, Banyan and Sercan Areas, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Environment Impact: Given the current low oil prices and high volatility in natural gas, KeyBanc adopts a more selective view of the sector as it enters 2026, which could negatively affect EOG's market performance.
- Investment Potential Comparison: While EOG Resources is seen as having investment potential, analysts note that certain AI stocks offer greater upside potential with less downside risk, reflecting a shift in market focus towards different investment areas.
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- Bond Yields Decline: The 10-year T-note yield fell by 4 basis points to 4.25%, supported by concerns over Fed independence and rising Japanese bond yields, which contributed to the stock market's recovery.
- Gold Prices Hit Record: Amid the Greenland crisis prompting safe-haven buying, gold prices surged by 1% to a new record high, reflecting increased market anxiety and heightened demand for gold as a store of value.
- Natural Gas Surge: Natural gas prices soared over 24% to a six-week high, driven by an Arctic cold front expected to boost heating demand, leading to significant gains in natural gas-producing stocks and showcasing the energy market's robust activity.
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- Natural Gas Surge: Natural gas prices surged over 21% to a six-week high, driven by an impending cold front in the eastern U.S. that boosts heating demand, potentially disrupting production and further stimulating related stock gains.
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