US wants lower Oil prices and the administration is open to allowing Russian Oil back in the market. Already OPEC is talking about increasing production in April. Remember the last time during Shale war, Saudi’s essentially bankrupted US shale oil producers. The administration is going to open more federal lands, and remove all regulatory hurdle to drilling. Oil companies will be forced to abandon their discipline and increase production, that’s the only way they can survive, compete and generate cashflow.
While in the short-term you get cheap oil, there are long-term costs. That’s for someone else to clean up that mess. But essentially Oil companies will suffer.
I will be closing my Chevron, XOM, BP positions or at least will go short XLE to hedge them.