Oil companies receive Trump but not “drill, baby, drill”

President Trump changes sharply US energy policy in favor of fossil fuels, but oil and gas society claims that these changes are not forces to engage in the madness of the new boreholes that Mr. Trump wants.

The oil industry is enthusiastic about Mr. Trump’s executive orders that are designed to make life difficult for companies using renewable energy sources and facilitate oil, gas and pipeline businesses. But to the critical question of whether his policy will lead to greater oil and gas production – which is one of Mr. Trump’s main objectives – industry managers say not if prices will not grow significantly, which is something the president says will not stand.

The aim of Mr. Trump is to promote oil and gas by releasing rules that regulate the mining, transport and export of fuels, while reducing competition, including wind turbines, electric vehicles and other low -emission technologies. This is a strong market signal, but it is not enough for companies to “drill, drill, drill”.

“What you see is a huge amount of positivity,” said Ron Gusek, President of Liberty Energy, a company providing services in oil fields whose CEO was elected Mr. Trump to lead the Ministry of Energy. “But it is too early to say that it will be reflected in the change of the actual level of activity here in North America.”

In order to significantly increase the boreholes and fraction, the prices of oil and natural gas would have to increase, they say managers, a result that is contrary to Trump’s goal by a reduction in energy costs. Oil companies will not spend money on production, which is almost record -breaking in the United States if they are not sure they can make extra money from the fuel that spews.

The President’s efforts to increase domestic production also complicate that industry generally focuses more on maintaining expenditures under control than during his first term. Wall Street companies have previously invested in fraction companies that were growing rapidly. Now investors want to support profitable operators.

Index of US oil and gas companies lost about 3 percent of its value last week when oil prices dropped below $ 75 per barrel. The Index on Monday lost another land when oil prices dropped below $ 73 per barrel. Prices of natural gas, which often rise in winter, have recently increased sharply, as much of the country has been struggling with very cold weather.

This means that there are the first signs that the market is responding to some statements and orders of Mr. Trump.

Potential customers have shown greater interest in closing long -term gas exports from the US since the election of Mr. Trump, said Ben Dell, a management partner of the energy investment company Kimmeridge.

“People want to be early and at the forefront when logging in to US products to try to avert the potential customs threat,” said Mr. Dell, whose company has a majority stake in Commonwealth LNG, waiting for federal approval of the proposed gas. -Profile race on the Gulf of Mexico.

Trump’s statement of national energy distress – associated with other executive regulations – equals the promise to test the boundaries of the presidential power Ensure that the demand for fossil fuels remains strong. It is a sharp turn from the agenda of its predecessor, which aims to push the nation from fuels that are primarily responsible for climate change.

On the first day in office, Mr. Trump ordered the Ministry of Energy Re -launch the permissions of gas exports, the process that President Joseph R. Biden suspended, although later the federal judge ordered the administration to cancel this pause. The President also threatened impose duties on a wide range of business partnersIncluding Canada and Mexico, which are close to the United States. (Depending on how they are formed, such fees can extremely disturb the oil and gas industry, a highly global industry that depends on imported materials and fuels.)

The results of the agenda of Mr. Trump to support fossil fuels will be clear after months and years. The last decade is a reminder that presidents can only do enough to support or stop different energy sources.

Oil and natural gas production in the US increased to record heights during the reign of Mr. Biden, even though he tried to get the country to a cleaner alternative. Mr. Trump’s efforts to support “clean, beautiful coal” During his first term, cheap natural gas did not match, which eventually exceeded coal on the market. Coal consumption in the US fell by more than a third during the first term of office, showing federal data.

The executive orders that Mr. Trump signed last week sets a plan to make it easier and cheaper for oil and natural gas mining – and make it difficult and more expensive to produce equipment that would help people reduce fossil fuel consumption.

He ordered federal agencies to stop renting and permission for all new wind projects until a new ecological review. The The Ministry of the Interior then froze for 60 days on the authorization of new solar panels and other renewable energy projects on public land.

In another executive regulation, Mr. Trump defined energy to include oil, coal, natural gas, nuclear, geothermal and water energy – except wind turbines and solar panels. He also told agencies Stop the distribution of money that Congress has earmarked for products such as installation of fast charging stations along highways. Legal experts said the presidents cannot stop by Congress approved expenditure.

However, some investors in green energy are already retreating back. After Mr. Trump won the November elections, the German company RWE, announced That it will reduce the expenditure of the development of US coastal wind energy, saying that the risks for new projects have increased there.

In the field of oil and natural gas, companies are particularly encouraged by the promise of Mr. Trump to facilitate the construction of pipelines, although it will probably take years, because Congress would have to accept new legislation and opponents are likely to try to block projects by questioning them. in court.

Today, it is particularly difficult to build a pipe that exceeds the state borders. Companies have almost gave up the building of long -distance pipelines in the northeast After previous projects faced considerable litigation, as well as the opposition from state and local officials.

As a result, companies can only move so much natural gas from Appalachia, one of the most prolific gas regions in the country, limiting production in states like Pennsylvania and reducing local prices. Several hundred miles away, in places like Boston, gas is generally much more expensive.

“What we will focus on is a very long -term and permanent reform of permits that will allow us to build things here in the US responsible,” said Alan Armstrong, CEO of Williams, one of the largest gas pipelines in the country.

Brad plumer She contributed by reporting.