POLITICO Energy Trump’s foreign policy and the price at the pump
Nov 11, 2025
James Bikales, a POLITICO reporter specializing in oil and gas policy, joins to dissect the shifting energy landscape since Trump took office. He explores how OPEC's increased production and U.S. output have contributed to a drop in gas prices, while examining the impact of Trump’s foreign policy on oil markets. The conversation takes a turn to rising electricity costs fueled by AI data centers, highlighting their emerging role as a significant political issue. It's a captivating look at how global dynamics influence everyday energy prices.
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OPEC Production Move Drove Price Drop
- OPEC's decision to lift production quotas is the primary reason oil and gas prices fell about 25% since Trump took office.
- Record U.S. output added supply but was secondary to OPEC's moves in driving crude and pump prices down.
U.S. Output Boost From Existing Wells
- U.S. record oil production grew partly from better output at existing wells rather than a huge increase in drilling.
- Layoffs and fewer rigs hint that U.S. production growth may slow without new investment.
Foreign Policy Lowered Geopolitical Premium
- Trump's foreign policy moves, like delaying major sanctions and advancing Middle East diplomacy, reduced geopolitical risk and helped keep prices lower.
- He didn't need to publicly pressure OPEC much because OPEC had independent reasons to increase output.