Whiting Petroleum appears to be serious in taking advantage of the current situation of oil producers. The company announced that it intends to make some huge investments in the United States, just as oil producers are working on scaling back their supplies.
Whiting Petroleum CEO, Chairman and President James J. Volker announced the company's plan to put more money on shale production in the United States, according to a report by UPI. The announcement is a welcome news for President Donald Trump as it could mean more job security in the energy industry.
The more than $1 billion in funding that Whiting Petroleum set aside for drilling investments will be used for ramping up production and reserves. The CEO said the plan will be beneficial to the company as it could give some much-needed boost to the balance sheet.
Despite the announcement, it seems that Whiting Petroleum cannot keep its stock from sliding down, Market Realist reported. The value of the company's stock has been falling since the start of 2017, a fact that could dampen shareholders' outlook on the company.
Whiting Petroleum is trying to fight off the impact of the volatile oil pricing to its shares. The announcement is expected to signal confidence to investors that the company has money to spare for increasing production.
States that are rich in oil are still experiencing some pressure due to supply concerns. The issue has been making investors anxious, thus impacting markets around the globe.
Whiting Petroleum's decision to produce more oil go against the pledge of oil-rich countries in the Middle East that vowed to limit the oil supply they put out on the market. Jobs & Hire previously reported that members of OPEC are trying to avoid oil glut in the market in order to control pricing.