President Donald Trump's " remains the same, continue to be the same, continue to be the same" is in turmoil as the US oil and gas industry - once one of the strongest supporters of him - began to express deep disappointment, according to Bloomberg.
During his election campaign, Mr. Trump announced that he would " released" the US energy industry from the environmental regulations of his predecessor Joe Biden. But just a few months after taking office for the second time in January, oil prices plummeted by 20%, putting many producers, especially small independent companies, in a difficult position.
WTI oil prices have dropped to only $55/barrel last month, causing many operators in the industry to feel disadvantaged. While large corporations such as Exxon Mobil and Chevron still have enough potential to overcome the low price period, small and medium-sized enterprises have announced spending cuts of up to 1.8 billion USD in just recent weeks, according to Bloomberg.
Andy Hendricks, CEO of Patterson-UTI Energy Inc, frankly commented: 50-dollar oil and the slogan 'more wait, drill for a long time are two things that cannot go together.
Not only does the US oil and gas industry have a headache due to oil prices, it has also become an indirect victim of the multi-frontal tariff war launched by President Donald Trump against many countries, from China to Brazil, South Korea and Mexico. Many drilling equipment and key components are now imported from these countries, making maintenance and repair costs expensive and uncertain, according to Bloomberg.
Kirk Edwards, former president of the Permian Basin Oil and Petroleum Association, expressed his frustration: We dont understand why the US oil and gas industry is being dragged into this tariff plan as a victim.
Faced with increasing pressure from the business community, many leaders of independent oil and gas companies met with Senator Ted Cruz, Energy Minister Chris Wright, leader of the US Department of Environmental Protection Lee Zeldin and several lawmakers to present concerns and propose solutions.
Some operators have proposed that President Donald Trump set a floor for crude oil, through convincing OPEC to cut production during a trip to the Middle East from 13-16, with stops in Saudi Arabia, Qatar and the United Arab Emirates (UAE). In addition, exempting import tax for oil and gas equipment is also an urgent requirement.
