US oil sector expresses disappointment with Trump
(MENAFN) The US oil industry is increasingly dissatisfied with President Donald Trump’s policies, with falling crude prices and tariffs putting pressure on producers, particularly smaller ones, according to Bloomberg. During his campaign, Trump’s “drill, baby, drill” slogan promised to boost the oil industry, which he argued had been stifled by former President Joe Biden’s environmental policies.
Although the US oil industry strongly backed Trump, some executives now feel let down as crude prices have dropped by 20% since his presidency began in January. Last month, West Texas Intermediate fell to as low as $55 per barrel. While lower oil prices help Trump fulfill his promise to reduce inflation, this has had negative consequences for domestic oil producers, particularly smaller firms.
Larger companies like Exxon Mobil and Chevron can weather the low prices, but independent producers are struggling. Many have announced significant spending cuts, totaling $1.8 billion in recent weeks.
Andy Hendricks, CEO of Patterson-UTI Energy Inc., commented that “$50 oil and ‘drill, baby, drill’” don’t align. Additionally, the tariff war Trump has initiated, impacting imports of equipment from countries like China, South Korea, Brazil, and Mexico, is causing further strain. This has created anxiety for the industry, especially concerning the cost and availability of repair equipment.
Kirk Edwards, former chairman of the Permian Basin Petroleum Association, questioned why the oil and gas industry is being targeted in the tariff plan. Many executives from private and independent oil companies have recently met with Texas Senator Ted Cruz, Energy Secretary Chris Wright, EPA administrator Lee Zeldin, and other congressional representatives to voice their concerns.
Some executives have urged Trump to set a price floor for oil, encouraging OPEC to cut production during his Middle East visit from May 13 to 16, and to offer tariff exemptions for oil field equipment.
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