The Trump administration's push to strengthen U.S. energy production is causing unease within the industry.
Oil and gas executives have expressed growing frustration with President Donald Trump’s energy policies, which they say are being undermined by his broader economic actions. A recent survey by the Federal Reserve Bank of Dallas revealed significant uncertainty among industry leaders, who are struggling to reconcile the administration’s stated goal of U.S. energy dominance with its tariff policies.
“‘Drill, baby, drill’ is nothing more than a myth and a populist slogan,” one respondent noted, referencing Trump’s campaign rhetoric in favor of boosting energy production. “Tariff policy is unpredictable and lacks a clear objective. We need stability.”
Tariff-related concerns were a dominant theme among respondents in the latest quarterly survey. Many executives pointed specifically to the recent steel tariffs, which have exacerbated the difficulties of long-term planning in the energy sector.
“Uncertainty has surged over the past quarter,” one respondent observed. “Planning new development has become extremely challenging due to volatility in steel prices and the broader economic outlook.”
Beyond tariffs, the administration’s energy strategy appears to be internally inconsistent. While Trump has championed increased production, he has also advocated for lower oil prices—two goals that industry experts say cannot coexist.
“There is no such thing as ‘U.S. energy dominance’ at $50 per barrel oil. Those two ideas are contradictory,” one industry leader commented. “If oil prices drop to $50 per barrel, U.S. production will decline significantly—by at least 1 million barrels per day within a few quarters. That is not energy dominance.”
Industry analysts have previously told Business Insider that American energy producers are not focused on expanding output while simultaneously lowering costs. Instead, they prioritize returning profits to shareholders. Meanwhile, U.S. crude production has reached record highs in recent years, calling into question the relevance of Trump’s “drill, baby, drill” mantra.
“The current political climate under this administration is fostering instability,” one executive noted. “Energy markets are feeling the effects of growing public distrust in all financial markets.”
Market performance further reflects the industry’s concerns. The SPDR S&P Oil & Gas Exploration & Production ETF, a key sector benchmark, has declined by 1.77% year-to-date.
As the administration continues to navigate trade and energy policy, the industry remains skeptical of its ability to deliver consistent and supportive policies for long-term growth. The conflicting goals of increasing production while maintaining low prices create uncertainty, making strategic planning difficult for energy companies. Until a clearer policy direction emerges, many in the industry will remain wary of the administration’s approach.
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