Tarif threats. Growing uncertainty about the economy. And a push for much lower oil prices.
For all their bravado about the American energy -dominance and enthusiasm for deregulation, American energy managers are starting to worry about President Trump's agenda.
Their worries this week crawled into conversations in hotel meetings and about private meals in Houston, where industrial magnates gathered for their most important annual conference.
Certainly, some hoped that the President would lower oil and gas companies a break at rates. Certainly, the administration was not serious to push the oil prices another 25 percent. Certainly, the unrest of the last two months would pass quickly.
And as soon as those glimmerers of frustration or doubt went away, they were gone, overshadowed by praise for Mr Trump, his cabinet and the aim of the administration to eliminate American energy companies – at least those in the production of oil, natural gas and nuclear energy.
Nowadays that is the delicate dance of the energy industry. Companies try to find a balance between fighting for their interests, which often include free trade, with a strong desire not to insult the president. The oil and gas industry has spent more than $ 75 million to choose Mr Trump.
“We hope that while we continue these conversations about the trade, the energy – Dominance agenda becomes more important than the tarief agenda,” said Mike Sommers, Chief Executive of the American Petroleum Institute, the head trade group of the oil and gas industry, in an interview at the conference, ceraweek by S & P Global.
Oil and gas managers will be next week Meet Trump in the White House.
“There is currently a lot of uncertainty – I understand the fear of this,” said Chris Wright, Mr. Trump's energy secretary, in an interview with the New York Times after he had had meetings with energy executives this week. “But I think we're going in a very good place.”
This week 25 percent rates came into force on imported aluminum and steel, both widely used by the energy industry. Mr. Trump also said that he would impose Hijden allowances on metals purchased from Canada, only to go back hours later after securing a concession.
Worries about rates and the economy were the main reasons why the S&P 500 index slid in a correction on Thursday, a decrease of 10.1 percent of a recent high. American oil prices were at $ 66.55 per barrel, almost 15 percent have fallen since just before Mr. Trump took office.
Peter Navarro, an assistant of the White House, who has long advised Mr Trump on trade, has publicly flooded about rough prizes that fall to $ 50 per barrel and said that such a tumbling would tame inflation. In most American oil fields, companies generally need prices above $ 60 per barrel to make money on new wells, according to the Federal Reserve Bank of Dallas.
“You are not going to find anyone in the industry to criticize the Trump administration,” said Scott Sheffield, who sold his large oil company last year, Pioneer Natural Resources, sold to Exxon Mobil.
Instead, Mr. Sheffield questions for Mr. Trump: “Does he really want $ 50 oil? Does he know the impact? What will it do with the industry? “
Managers who still manage or represent companies were generally not that blunt. Many have praised Mr Trump and his cabinet choices, who support an “all the above” approach to the development of energy.
“It is refreshing,” said Toby Rice, Chief Executive of natural gas producer EQT, after attending a dinner that Mr. Wright and Doug Burgum, the Minister of the Interior, had with energy leaders. “It is very clear that this administration is aimed at reducing energy bills for consumers.”
Sometimes people in soft requests for more certainty and less volatility.
“I will say this in about two and a half seconds and continue: we need a common sense of trade policy,” said Jay Timmons, Chief Executive of the National Association of Manufacturers, during breakfast near the conference. Many laughed then Mr. Timmons quickly returned in more comfortable area.
His trade group has asked the White House for more predictability and time to adapt to new trade policy. Many manufacturers are concerned about the rising costs because they often depend on imports for parts or raw materials and are concerned about tariff delay by other countries.
Ryan Lance, Chief Executive of Conocophillips, one of the largest American oil and gas producers, said he saw energy as a “poster” for the efforts of Mr. Trump to create jobs and bring production back to the United States.
“I hope they take on me while they think about what they are going to do on the rate side,” said Mr. Lance. “Whether you free energy or not, I think there is something that people should look at.”
Mr. Trump went back and forth on plans to burden energy from Mexico and Canada. The United States is particularly dependent on Canadian oil, which combine refineries with domestic crude oil to make gasoline and diesel fuel.
Other managers were more optimistic about trade policy.
“There is fear around the rates,” said Abigail Ross Hopper, who leads the Solar Energy Industries Association. “But it is not full panic as it was at the start of the first Trump government.”
In 2018, during his first term, Mr Trump placed a rate of 30 percent on imported solar cells and modules, the building blocks for panels that change sunlight into electricity.
Just like other renewable energy leaders, Mrs. Hopper tried to frame her sector in terms that could resonate with the Trump administration.
“There is nothing unique about the production of solar energy,” said Mrs. Hopper. “It's just like performing pencils. If nobody needs pencils anymore, the pencil manufacturer will go bankrupt. “
Many energy companies have set their sights on reducing obstacles for securing permits for pipelines, high -voltage lines and other infrastructure that can be very difficult to build in many places in many places.
Alan S. Armstrong, Chief Executive of a pipeline company, Williams, said that rate -related price increases faded in comparison with the costs and risks related to permits.
“If we could pay 25 percent on the pipe to get the permit, we would go through that trade all day,” said Mr. Armstrong.
Ivan Penn Contribution of reporting from Houston.
