Oil Giants Head to Trump Talks with Trepidation Over Tariffs, Crude Prices
The chief executives of more than a dozen oil companies will deliver messages of gratitude and caution when they meet with President Donald Trump on Wednesday.
The industry leaders say they have plenty of reasons to be grateful. Trump has been an unabashed champion of U.S. oil and gas production and has vowed to unleash the industry’s potential. Two months into his term, he has taken steps to begin rolling back policies that have raised operating costs and reduced demand for fuel.
But for at least 15 oil bosses who will visit Trump at the White House, there are also warning signs on the path to energy dominance. Energy Secretary Chris Wright has floated a $50-a-barrel target for crude that is too low to sustain some U.S. production. The president has spent days enthusiastically hyping the oil price plunge that came after he urged OPEC+ to increase output and the cartel complied. Meanwhile, the president’s threatened tariffs have fueled industry concerns about a potential economic downturn even as the levies raise the cost of the materials oil companies use to refine gasoline and drill wells.
"I suspect operators are excited about the new market opportunities" presented by Trump, said Kevin Book, managing director of Washington consulting firm ClearView Energy Partners LLC. But they may also be "concerned about the drag on demand from the trade war. And, in general, in oil, higher prices are better than lower prices."
Source: Bloomberg
