POLITICO Energy
Why the oil and gas industry is publicly staying mum on Trump’s tariffs
Apr 8, 2025
The oil and gas industry is surprisingly silent on the implications of President Trump's new tariffs, raising questions about their public relations strategy. Behind closed doors, industry insiders express worry over declining oil prices and OPEC's increased production. The discussion highlights the challenges stemming from recent trade policies, cautious responses, and the potential for operational impacts. Additionally, there's a focus on EPA's approval of carbon capture projects, signaling a shift toward more innovative solutions amid uncertainty.
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Quick takeaways
- The oil and gas industry is secretly concerned about the negative impact of Trump’s tariffs, yet chooses to remain publicly silent to avoid backlash.
- The industry's growth forecasts have drastically reduced due to declining oil prices and OPEC's increased production, posing significant challenges for US producers.
Deep dives
Impact of Tariffs on the Oil and Gas Industry
The oil and gas industry is currently facing significant challenges due to recent trade tariffs imposed by the Trump administration. Analysts indicate that a drop in oil prices, now hovering around $60 per barrel, could lead to a reduction in new drilling and even halt production from existing wells. Before the tariffs, forecasts suggested a growth of approximately 550,000 barrels per day in US oil production, but this estimate has been revised downward to about 300,000 barrels per day, signaling a potential stagnation in growth. The industry's struggle is compounded by OPEC's strategy of increasing production, which further pressures US producers by flooding the market with oil.
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