Trump promised ‘drilling, baby, drilling’. The new platforms are nowhere

The Dallas Federal Reserve Bank ‘ quarterly survey Of more than 130 oil and gas producers based in Texas, Louisiana and New Mexico, made in June, suggests that the industry’s perspective is pessimistic. Almost half of the 38 companies that answered this question saw their companies drill less wells This year of what they expected before.

Survey participants could also send comments. An executive of an exploration and production company (E & P) said: “It is difficult to imagine how worse DC policies and rhetoric could have been for US E & P companies.” Another executive said: “The Day of release Chaos and rates mischief have damaged the national energy industry. ‘Drill, baby, drill’ will not happen with this level of volatility. “

Approximately one in three respondents attributed the expectations of less wells to higher rates on steel imports. And three out of four tariffs increased the cost of drilling and completing new wells.

“They are getting more places to pierce and get some lower royalties, but they also get these rates they don’t want,” said Rapier. “And the conclusion is that their profits are going to suffer.”

Earl this month, Exxonmobil My dear That your profits in the quarter of April and June will be approximately $ 1.5 billion lower than in the previous three months due to the weakest prices of oil and gas. And in Europe, BP, Shelland Total energy He issued warnings similar to investors about successes to their respective profits.

These warnings come even when Trump has installed Friendly faces To regulate the oil and gas sector, even in the Department of Energy, the Environmental Protection Agency and the Department of the Interior, the last of which manages federal lands and is preparing to auction more oil and gas leases in those lands.

“There is a lot of enthusiasm for a window of opportunity to make investments. But there is also a lot of caution about wanting to ensure that if there are regulatory reforms, they will remain,” said Kevin Book, Managing Director of Research at Clearview Energy Partners, which produces analysis for companies and energy investors.

The act that Big Beautiful Bill was recently promulgated contains provisions Require four lease sales on land and two on the high seas each year, reducing the minimum rate of royalties to 12.5 percent from 16.67 percent and bringing the speculative lease, when the lands that do not invite enough offers to rent for less money, that stopped in 2022.

“Pro Energy policies play a fundamental role in strengthening national production,” said a spokesman for the American Petroleum Institute, the main group of the United States oil and gas industry. “The new fiscal legislation unlocks opportunities for safe and responsible development in the critical basins of resources to offer affordable and reliable fuels in those who trust Americans.”

Because approximately half of federal royalties end with the states and localities where drilling occurs, “budgets in these communities of oil and gas will be affected,” said Rowland-Shea of US progress. Meanwhile, he said, drilling in public lands can contaminate the air, raise noise levels, cause spills or leaks, and restrict movement for both people and wildlife.