Oil and gas executives are set to meet President Trump at the White House on Wednesday to voice their concerns over tariffs, tax credits, and deregulation. The industry, which invested over $75 million to support Trump’s election campaign, is increasingly disillusioned with some of his policies. The imposition of tariffs is raising the cost of essential materials like steel pipes and unsettling consumer confidence. Meanwhile, oil prices have dropped around 14 percent since Trump took office, currently hovering below $67 a barrel. This contrasts with the perspective of Peter Navarro, a senior White House aide, who has touted the potential advantages of $50 per barrel oil. However, such prices could spell trouble for many companies drilling in vast areas of the American oil landscape, making new wells financially unviable.
The issue of tariffs is at the forefront of the executives’ agenda. Current trade practices allow U.S. refineries to purchase oil from Canada and Mexico, convert it into fuels such as gasoline, and export these higher-value products. These trade relationships have flourished over decades and untangling them would be costly and complex. Trump initially announced 25 percent tariffs on imports from Canada and Mexico, with a 10 percent rate specifically for Canadian energy products. Nevertheless, their implementation on most goods, including energy, has been deferred but is slated to take effect early April. Of particular concern to industry leaders is the 25 percent tariff on imported steel, already in effect. Steel is a vital component in pipelines and drilling infrastructure, and the added costs due to these tariffs are worrisome. While some executives hope for exemptions, they face resistance from the administration.
Furthermore, energy companies are urging Trump and Congress to ease permitting regulations to facilitate the construction of essential infrastructure such as pipelines and transmission lines. There is a push to curb states’ ability to obstruct proposed projects and to limit prolonged legal battles instigated by environmental groups. Recently, Chris Wright, the newly appointed U.S. Energy Secretary, highlighted the need for clear, actionable feedback from executives on regulatory hurdles at the CERAWeek by S&P Global conference in Houston. “If you want more energy and investment in the United States, we’ve got to be able to build things again,” Wright emphasized, seeking specifics on permit issues faced by companies.
Additionally, several oil and gas firms are keen to maintain clean energy tax credits crucial for developing hydrogen and renewable fuels, alongside technologies for carbon capture. Vicki Hollub, CEO of Occidental Petroleum, has been a leading voice for preserving federal incentives for carbon dioxide removal, a major contributor to global warming. The tax credit, known as 45Q based on its position in the tax code, is vital for accelerating technology to enhance U.S. energy independence. “To accelerate the technology at the pace that the U.S. needs it,” Hollub stated at CERAWeek, “we need 45Q to happen and to stay in place.”
The meeting with President Trump underscores the balancing act the administration faces in satisfying the oil and gas industry’s call for deregulation and tariffs relief while managing broader economic and environmental responsibilities. Executives are hopeful for fruitful dialogue that aligns their business interests with policy directions, setting the stage for future growth and stability in the sector amidst a complex global market.
Original Source: https://www.nytimes.com/2025/03/19/business/energy-environment/oil-executives-trump-tariffs.html
Category : United States Politics and Government,Tax Credits, Deductions and Exemptions,International Trade and World Market,Oil (Petroleum) and Gasoline,Global Warming,Regulation and Deregulation of Industry,Natural Gas,Customs (Tariff),Carbon Capture and Sequestration,Prices (Fares, Fees and Rates),Infrastructure (Public Works),Alternative and Renewable Energy,Pipelines,United States Economy,Steel and Iron,Trump, Donald J,Wright, Chris (1965- ),Canada,Mexico
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Publish Date: 2025-03-19 18:10:00
