Trump’s policies are creating uncertainty for fossil fuel companies
“Lawyers will have a field day one day,” said Hathawi, who is now manager of lawyers for a good government, a non -profit -dedicated legal support.
Clearly, these new rules are exclusively gifts to the extracted industries such as drilling and mine. Solar and wind projects – which the government has repeatedly attacked, recaptures marine wind leases and stops ordering projects that are already underway – especially in the list of authorized projects for the acceleration time table. But, of course, these instructions only help an unknown environment for fossil fuel producers under the new Trump government.
Even before the chaos of the day of liberation, Big Oil met the president with the president who helped the election. While shale oil boom in early 2010 rewarded managers to increase production, this strategy led to excessive supply and led to a decline in prices per barrel in the first Trump administration. After the prices declined during the epidemic, investors became more careful about the production.
“It is not a government regulation to limit production growth in the United States,” says Clayton Siegel, a senior partner in the Center for Strategic and International Studies, a Washington DC -based thinking room.
The industry rose to the industry in the early 2020s with the global energy crisis caused by Russian invasion of Ukraine, but investors were watching prices. Despite President Joe Biden’s climate, the US oil and gas industry became the world’s largest crude oil producer in 2023 and reached a record of over 13.4 million barrels a day late last year. The challenge under the Trump administration aims to benefit the president of abandoning “energy dominance” in profitability. In addition, Trump has said that it wants to fall to $ 50 a barrel – a very low price to make the industry profitable.
Every quarter, the Federal Reserve Central Bank publishes a regional report on the status of the oil and gas industry in Texas, Louisiana and New Mexico, which includes anonymous poll responses from managers. Witriol shocked the analysts to the White House in this comment on the first poll this year, released in late March.
An anonymous executive said, “The keyword to describe 2025 is” uncertain “and as a state -owned company, our investors hate uncertainty.” This uncertainty is due to conflicting messages from the new government. Could not exist “US energy dominance” and $ 50 per barrel of oil; These two sentences are inconsistent. “
Another wrote: “Drill, child, drill” is nothing short of myth and populist screams. “
Trump continues to deliver suspicious gifts to the industry. On Thursday, the internal announced that it has changed some of the maritime drilling policies in the Gulf of Mexico, which the agency said could increase production in the Gulf by up to 100,000 barrels per day. Meanwhile, the interior is also reportedly assembled a list of fossil fuel reserves in public lands that intend to open for production.
