\n<\/p>\n
The Federal Reserve Bank of Dallas\u2019 quarterly survey of over 130 oil and gas producers based in Texas, Louisiana, and New Mexico, conducted in June, suggests the industry\u2019s outlook is pessimistic. Nearly half of the 38 firms that responded to this question saw their firms drilling fewer wells this year than they had earlier expected.<\/p>\n
Survey participants could also submit comments. One executive from an exploration and production (E&P) company said, \u201cIt\u2019s hard to imagine how much worse policies and DC rhetoric could have been for US E&P companies.\u201d Another executive said, \u201cThe Liberation Day chaos and tariff antics have harmed the domestic energy industry. \u2018Drill, baby, drill\u2019 will not happen with this level of volatility.\u201d<\/p>\n
Roughly one in three survey respondents chalked up the expectations for fewer wells to higher tariffs on steel imports. And three in four said tariffs raised the cost of drilling and completing new wells.<\/p>\n
\u201cThey\u2019re getting more places to drill and they\u2019re getting some lower royalties, but they\u2019re also getting these tariffs that they don\u2019t want,\u201d Rapier said. \u201cAnd the bottom line is their profits are going to suffer.\u201d<\/p>\n
Earlier this month, ExxonMobil estimated that its profit in the April\u2013June quarter will be roughly $1.5 billion lower than in the previous three months because of weaker oil and gas prices. And over in Europe, BP, Shell, and TotalEnergies issued similar warnings to investors about hits to their respective profits.<\/p>\n
These warnings come even as Trump has installed friendly faces to regulate the oil and gas sector, including at the Department of Energy, the Environmental Protection Agency, and the Department of the Interior, the latter of which manages federal lands and is gearing up to auction more oil and gas leases on those lands.<\/p>\n
\u201cThere\u2019s a lot of enthusiasm for a window of opportunity to make investments. But there\u2019s also a lot of caution about wanting to make sure that if there\u2019s regulatory reforms, they\u2019re going to stick,\u201d said Kevin Book, managing director of research at ClearView Energy Partners, which produces analyses for energy companies and investors.<\/p>\n
The recently enacted One Big Beautiful Bill Act contains provisions requiring four onshore and two offshore lease sales every year, lowering the minimum royalty rate to 12.5 percent from 16.67 percent and bringing back speculative leasing\u2014when lands that don\u2019t invite enough bids are leased for less money\u2014that was stopped in 2022.<\/p>\n
\u201cPro-energy policies play a critical role in strengthening domestic production,\u201d said a spokesperson for the American Petroleum Institute, the top US oil and gas industry group. \u201cThe new tax legislation unlocks opportunities for safe, responsible development in critical resource basins to deliver the affordable, reliable fuel Americans rely on.\u201d<\/p>\n
Because about half of the federal royalties end up with the states and localities where the drilling occurs, \u201cbudgets in these oil and gas communities are going to be hit hard,\u201d Rowland-Shea of American Progress said. Meanwhile, she said, drilling on public lands can pollute the air, raise noise levels, cause spills or leaks, and restrict movement for both people and wildlife.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Federal Reserve Bank of Dallas\u2019 quarterly survey of over 130 oil and gas producers based in Texas, Louisiana, and New Mexico, conducted in June, suggests the industry\u2019s outlook is pessimistic. Nearly half of the 38 firms that responded to this question saw their firms drilling fewer wells this year than they had earlier expected.<\/p>\n","protected":false},"author":1,"featured_media":13663,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[631,7342,6821,7343,81],"class_list":{"0":"post-13662","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-technology","8":"tag-baby","9":"tag-drill","10":"tag-promised","11":"tag-rigs","12":"tag-trump"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/13662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13662"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/13662\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/13663"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}