Oil companies hug Trump, but ‘drill, baby, drill’

President Trump is rapidly turning the US energy policy in favor of fossil fuel, but oil and gas companies say these changes will not motivate them to join the frenzy of new drilling who want Mr. Trump.

The oil industry is thrilled by the executive orders of Mr. Trump, which are designed to make life hard and easier for oil, gas and pipeline businesses for renewable energy companies. But on the important question whether their policies would produce more oil and gas – one of the central goals of Shri Trump – industry officials say that until prices do not increase too much, the President says that he stands for it Will not be there.

Mr. Trump aims to support oil and gas by loosening the rules that have extracted, transportation and export regulations of fuel, kneeling in competition, including wind turbines, electric vehicles and other low emission technologies. This is a powerful market signal, but is not enough for companies for “drills, baby, drills”.

“What you are seeing is a huge amount of positivity,” said Ron Gusek, president of Liberty Energy, an oil field service company, whose chief executive was chosen by Mr. Trump to lead the Energy Department. “But it is too early to say that this will change the actual activity levels in North America.”

Officials say that for adequate increase in drilling and fracting, oil and natural gas prices will increase, a result that is contrary to Mr. Trump’s goal of preventing inflation by reducing the cost of energy. Oil companies will not spend money on production, which is already close to record levels in the United States, if they do not believe they can earn money from the additional fuels produced by them.

The President’s efforts to increase domestic production is more complex. The industry is generally focusing on controlling expenses than their first term. Wall Street Companies used to invest in fast growing fracting companies. Now, investors want to support profitable operators.

Last week, the index of US oil and gas companies declined by about 3 percent as oil prices fell below $ 75 per barrel. On Monday, the index lost an additional lead as oil prices fell below $ 73 per barrel. Natural gas prices, which often rise in winter, have recently increased as most of the country is struggling with very cold weather.

As stated, there are initial indications that the market is reacting to some statements and orders of Mr. Trump.

Possible customers have expressed more interest in making long -term deal for American gas exports since Mr. Trump was elected, “said Managing partner of Energy Investment firm Kimeriz.

“People want to be quick and lead to signed up to American products to avoid potential tariff hazards,” said Mr. Dale, who has a majority stake in the Commonwealth LNG, which has federal approval for the proposed gas, which has federal approval for the proposed gas Waiting – Export plant on the Gulf coast.

Mr. Trump’s announcement of national energy emergency – added with other executive orders – the demand for fossil fuel remains stronger, to ensure that the promise of testing the limits of the President’s power is equal to the promise. This is an acute upsurge from their predecessor agenda, which aims to push the country away from fuels that are primarily responsible for climate change.

On its first day in the office, Mr. Trump directed the Department of Energy to resume permission to review gas-export facilities, a process that President Joseph R.K. Biden had stopped, although a federal judge later ordered the administration to lift the ban. The President has also threatened to impose tariffs on several business partners, including Canada and Mexico, who are close to the United States. (Depending on how they take shape, such levy can be extremely disruptive for oil and gas industry, a highly global industry that depends on imported materials and fuel.)

The results of Mr. Trump’s fossil fuel agenda will become clear in months and years. If anything, the previous decade reminds that the President can only do so much to promote or disrupt various sources of energy.

US oil and gas production led by Mr. Biden reached a record high, while he tried to push the country towards clean options. During his first term, Mr. Trump’s efforts to support “clean, beautiful coal” had no match with cheap natural gas, which eventually defeated coal in the market. According to the federal data show, the consumption of American coal fell more than one third of the first term of Mr. Trump.

In the executive order that Mr. Trump signed last week, a road map was prepared to make the production of oil and gas easier and cheaper – and it was made difficult and more expensive to make such equipment that people have fossils to make fossils. Will help reduce fuel use.

He ordered federal agencies to stop leasing and issuing permits for all new wind projects until the new environmental review is pending. After this, the internal department banned 60 days On authorizing new solar arrays and other renewable energy projects on public land.

In another executive order, Mr. Trump defined energy to include oil, coal, natural gas, atomic, geotomatic and hydroelectric – clearly except wind turbines and solar panels. He also asked the agencies to stop the distribution of the money that the Congress had set aside for products such as the establishment of fast charging stations on highways. Legal experts have said that the President cannot stop the expenses authorized by the Congress.

But some green energy investors are already pulling back their steps. After Mr. Trump won the November election, a German firm, RWE, Announced Saying that this American offshore wind will cut spending on development, saying that there is an increased risk for new projects.

In the field of oil and gas, companies are particularly encouraged by Mr. Trump’s pledge to make the manufacture of pipelines easier, although it is likely to take many years to do so as Congress will need to pass new laws and challenge opponents There will be most likely to block projects by giving. In court.

Today, it is particularly difficult to create a pipeline that crosses the state borders. The earlier projects have been quit to build long-range pipelines in the Northeast after facing adequate litigation as well as opposition from state and local authorities.

As a result, companies can carry only the same natural gas from Epalachia, one of the most abundant gas areas of the country, which has disrupted production in states such as Pennsylvania and has reduced prices at the local level. Several hundred miles away, in places like Boston, gas is generally more expensive.

Williams Chief Executive Allen Armstrong said, “The thing we are going to focus on is a very long -term, sustainable permission reform that allows us to create things responsible in the US.” The country’s largest natural gas pipeline operator.

Brad plummer Contributed to reporting.