- Executives from the oil and gas industry are expressing irritation over the tariffs and energy policies implemented by the White House.
- Participants in an anonymous Federal Reserve survey indicate increasing uncertainty within the U.S. energy sector.
- The direction of our tariff policy is unpredictable for us and lacks a distinct objective. Our aim is to achieve greater stability.
The Trump administration’s
plans to bolster
US energy production is disrupting the industry.
Oil and gas industry leaders are expressing broad dissatisfaction with President Donald Trump’s energy policies up until now, despite these being undermined by his other initiatives. Executives
surveyed
as reported by the Federal Reserve Bank of Dallas, highlighted significant uncertainties, raising doubts about how the administration intends to increase US energy supremacy while
simultaneously raising tariffs
.
“‘Drill, baby, drill’ is nothing short of a myth and populist rallying cry,” one comment said, referring to Trump’s pro-industry campaign slogan. “Tariff policy is impossible for us to predict and doesn’t have a clear goal. We want more stability.”
Frustration over tariffs was a common sentiment among anonymous respondents in the most recent quarterly survey. The commentators were notably worried about the previous month’s developments.
steel levies
, which have intensified the difficulties of future planning.
The level of doubt about all aspects has significantly increased over the last three months. It is currently very challenging to plan for new developments because of the unpredictability surrounding steel-related items.
Moreover, the White House appears to be pursuing two contradictory objectives with its energy policies. While Trump aims for a surge in production, he has also
called for cheaper oil
.
The concept of ‘U.S. energy dominance’ and oil prices at $50 per barrel cannot coexist; these ideas contradict each other,” noted one observer. “Should crude oil remain around $50 a barrel, U.S. petroleum output would swiftly and substantially decrease—possibly by more than 1 million barrels daily within just a few months. Such a scenario does not align with what we’d consider ‘energy dominance.’
Energy experts formerly informed Business Insider that US energy producers aren’t keen on reducing expenses or increasing output capacity; instead, their primary focus lies elsewhere.
returning money to shareholders
Meanwhile, U.S. oil output has reached
all-time highs
In recent times, questioning Trump’s “drill, baby, drill” slogan has become more common.
The political atmosphere initiated by the recent presidential administration seems to be fostering instability. The energy sector is also experiencing a decline in public trust across all market sectors.
The SPDR S&P Oil & Gas Exploration & Production ETF has decreased by 1.77% so far this year.
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