Donald Trump and maga Republicans talk the talk but failed administration's fuel and energy policies are a mess!
A New Year’s resolution for Donald Trump: Stop🛑 ❗hurting Texas oil producers | Editorial published by the Houston Chronicle editorial board:
If you tuned in to Donald Trump’s "yelling fest", he called it his "address to the nation" on Wednesday night highlighting his economic policies, you may have noticed a significant omission: nary a mention of oil and gas production.
Yes, Donald Trump, is the same president who promised during his re-election campaign to make the U.S. rich by drilling for “liquid gold”, but he could only muster a brief, tepid and inaccurate boast about his energy policy in the first year of his second term.
Rather, he highlighted growth in power generation — though much of that came from wind and solar projects subsidized by federal programs, and Trump just slashed these funds — and claimed raises for coal miners. And prices at the gas pump continue to fall “now under 💲2.50 a gallon in much of the country,” he said.
But, what Trump didn’t mention is that the cheap gasoline is largely a result of the lowest crude oil prices in four years: 💲56 a barrel for West Texas Intermediate, according to recent data, a 20% decline from last year.
Texas’ flagship industry was already having a brutal year before the latest drop in oil prices. Tariffs left many companies, including majors, reeling. Thousands of workers have been laid off.
With many expecting the pain to continue into the first quarter of next year, it's high time that Texas’ political leaders start pushing back against Trump’s incoherent and damaging energy policy.
For a time, it seemed oil and gas executives had already reached that breaking point. Some were openly critical of Trump and his advisers for cheering on oil prices as low as 💲50 a barrel and imposing tariffs on steel and aluminum that hiked the cost of drilling. These folks aren’t California environmentalists. They supported and bankrolled Donald Trump's re-election. Trump’s peeling back of environmental regulations and doling out billions in tax breaks could pay off for them in the long run, but right now they’re getting a lousy return on their investment.Even so, the Big Oil C-suite hasn’t yet raided the Oval Office with pitchforks. Instead, there appears to be a numbing acceptance in the industry that the sluggish market will persist,😞 at least through the beginning of next year. The latest Dallas Fed survey of oil and gas firms in Texas, Louisiana and New Mexico struck a😒 pessimistic tone on the short-term outlook. If there’s a silver lining on the horizon for producers, it’s that global liquefied natural gas prices are perking up, positioning the U.S. to be a major player in that market.
“The supply-demand issues for natural gas are finally heading into a bull phase,” wrote one Fed survey participant from an exploration and production firm. “The administration’s trade policy is forcing balancing and many countries have to buy LNG to offset their trade deficits with America.”
This editorial board has supported LNG exports alongside sensible regulations that curtail methane leaks and protect fence-line communities. When done right, LNG can benefit our economy and reduce greenhouse-gas emissions in countries that burn coal.
Kirk Edwards, the CEO of Latigo Petroleum, an Odessa-based oil and gas production company, told the Houston Chronicle's editorial board that the explosion of data centers and AI companies in Texas also bodes well for natural gas production.
“The only way to get that sustainable power is going to be through natural gas turbine-driven electricity,” Edwards said.
Of course, that would be a lot easier if Trump eased up on tariffs. There are more than 100 new natural gas plants planned to go online by 2030, but tariffs on materials used to build the plants, combined with supply chain shortages, are jacking up the costs of construction. It’s also an open question whether the glut of future data center projects in the ERCOT interconnection queue will actually be built, adding to the uncertainty for natural gas developers.
While the spike in natural gas prices eases the pain for the industry, it’s hurting consumers’ bank accounts. (Yes❗💢) Americans paid $12 billion more for natural gas this year, owing to a 22% increase in LNG exports. The European Union’s recent decision to ban LNG imports from Russia next year because of the ongoing war in Ukraine, could boost U.S. exports – and our utility bills – even higher.
Oil and gas executives still want to believe in Trump. But, nevertheless, the instability and lack of policy discipline that has defined his presidency is trying their patience. And even worse, it’s undermining the workers.
Labels: Houston Chronicle, liquefied natural gas, LNG, New Year's resolution, Texas



















