Oil executives are warning that President Donald Trump\u2019s tariffs and \u201cdrill, baby, drill\u201d message have created uncertainty in energy markets that is already affecting investment.<\/p>\n
The executives, shielded by anonymity, bluntly criticized Trump in their responses to a survey conducted by the Federal Reserve Bank of Dallas from March 12 to March 20.<\/p>\n
\u201cThe administration\u2019s chaos is a disaster for the commodity markets,\u201d one executive said. \u201d\u2018Drill, baby, drill\u2019 is nothing short of a myth and populist rallying cry. Tariff policy is impossible for us to predict and doesn\u2019t have a clear goal. We want more stability.\u201d<\/p>\n
Several executives said Trump\u2019s steel tariffs are raising their costs, making it difficult to plan for future projects.<\/p>\n
\u201cUncertainty around everything has sharply risen during the past quarter,\u201d another executive said. \u201cPlanning for new development is extremely difficult right now due to the uncertainty around steel-based products.\u201d<\/p>\n
They also criticized the suggestion by White House advisers such as Peter Navarro that Trump\u2019s \u201cdrill, baby, drill\u201d agenda aims to push oil prices down to $50 a barrel to fight inflation.<\/p>\n
\u201cThe threat of $50 oil prices by the administration has caused our firm to reduce its 2025 and 2026 capital expenditures,\u201d an executive said. \u201d\u2018Drill, baby, drill\u2019 does not work with $50 per barrel oil. Rigs will get dropped, employment in the oil industry will decrease, and U.S. oil production will decline as it did during COVID-19.\u201d<\/p>\n
CNBC has asked the White House for comment.<\/p>\n
The Dallas Fed Energy Survey is conducted every quarter with about 200 firms responding. The survey covers operators in Texas, southern New Mexico and northern Louisiana.<\/p>\n
The scathing criticism in the Dallas Fed survey stood in contrast to major oil companies\u2019 public comments at the industry\u2019s big energy conference in Houston earlier this month.<\/p>\n
Executives mostly praised Trump\u2019s energy team during the event and welcomed the administration\u2019s focus on increasing leasing and slashing red tape around permitting.<\/p>\n<\/p>\n
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