Tariffs Putting the Brakes on US Energy Sector's Boom

Tariff threats. Growing uncertainty about the economy. And a push for much lower oil prices.

- Rebecca F. Elliott

For all of their bravado about US energy dominance and enthusiasm for deregulation, American energy executives are beginning to worry about President Donald Trump's agenda.

Surely, some hoped, the President would cut oil and gas companies a break on tariffs. Surely, the administration was not serious about pushing oil prices down another 25 per cent. Surely, the turmoil of the past two months would soon pass.

And just as soon as those glimmers of frustration or doubt slipped out, they were gone, overshadowed by praise for Mr Trump, his Cabinet and the administration's aim to unshackle US energy companies – at least the ones in the business of producing oil, natural gas and nuclear power.

Such is the energy industry's delicate dance these days. Companies are trying to balance fighting for their interests, which often include free trade, with a strong desire not to offend the President. The oil and gas industry spent more than US$75 million (S$100 million) to elect Mr Trump.

"We're hopeful that as we continue these conversations on trade, that the energy dominance agenda becomes more important than the tariff agenda," Mr Mike Sommers, chief executive of the American Petroleum Institute, the oil and gas industry's main trade group, said.

"There's a lot of uncertainty right now — I understand the angst about all that," Mr Chris Wright, Mr Trump's Energy Secretary, said. "But I think we're going to get to a very good place."