President Trump winds the American energy policy sharply in favor of fossil fuels, but oil and gas companies say that those changes will not force them to participate in the razoria of new drilling that Mr. Trump Wil.
The oil industry is delighted by Mr Trump's executive orders, which are designed to make life more difficult for companies of renewable energy consumption and easier for oil, gas and pipeline companies. But about the critical question of whether his policy will lead to more oil and gas production – one of Mr Trump's central goals – industrial managers do not say unless prices rise much, something the president says he will not stand.
Mr. Trump's purpose is to support oil and gas by loosening the rules that rule, transport and export, while they kneel the competition, including wind turbines, electric vehicles and other technologies for low emissions. That is a powerful market signal, but not enough for companies to “drill, baby, drill.”
“What you see is a huge amount of positivity,” said Ron Gusek, president of Liberty Energy, an oil field service company whose chief executive was chosen by Mr. Trump to lead the energy department. “But it is too early to say that it will translate into a change into actual activity levels here in North America.”
To drill and make fracking, the oil and natural gas prices of the natural ga should rise, say managers, an outcome that is at odds with the purpose of Mr Trump to limit inflation by reducing the costs of energy. Oil companies will not spend money on production, which is already near record levels in the United States, if they are not confident that they can earn money with the extra fuel they solve.
The efforts of the president to further increase domestic production is that industry is generally more focused on keeping expenditure under control than during his first term. Wall Street companies always invested in fracking companies that grew quickly. Now investors want to support profitable operators.
An index of American oil and gas companies lost around 3 percent of its value last week when oil prices slid below $ 75 per barrel. The index lost an extra land on Monday when the oil prices slid below $ 73 per barrel. Natural gas prices, which often rise in the winter, have recently risen because a large part of the country has disputed with very cold weather.
That said, there are early signs that the market responds to some statements and orders from Mr. Trump.
Potential customers have shown more interest in the inks of long-term deals for the export of American gas since Mr. Trump was chosen, said Ben Dell, a managing partner of the energy investment company Kimmeridge.
“People want to be early and in the vanguard in registering for American products to try to avert potential tariff threats,” said Mr. Dell, whose company has a majority stake in commonwealth LNG, which is waiting for federal approval for a proposed gas -Export factory on the Gulf Coast.
Mr Trump's statement of a national energy law – in combination with other executive orders – comes down to a promise to test the boundaries of presidential power to ensure that the demand for fossil fuels remains robust. It is a sharp reversal of the agenda of his predecessor, who aimed to push the nation away from fuels that are mainly responsible for climate change.
On his first day at the office, Mr Trump dedicated the energy department to restart assessment of gas export facilities, a trial that President Joseph R. Biden had paused, although a federal court later ordered the administration to lift that break. The president also has threatened rates for a wide range of trading partners, including Canada and Mexico, who are close allies of the United States. (Depending on how they take shape, such taxes can be extremely disturbing for the oil and gas industry, a very global industry that depends on imported materials and fuels.)
The results of Mr. Trump's pro fossil fuel agenda will become clear in months and years. If there is something, the past decade is a memory that presidents can only do so much to support or hinder different sources of energy.
The American oil and gas production rose to register heights under Mr Biden, even while trying to push the country into cleaner alternatives. Mr. Trump's efforts to support “clean, beautiful coal” during his first term were not a party for cheap natural gas that ultimately coal on the market in the market. The American coal consumption fell more than a third party during Mr Trump's first term, according to federal data.
The executive orders that Mr Trump signed last week imposed a route map to make it easier and cheaper to produce oil and gas – and harder and more expensive to build equipment that would help people reduce their use of fossil fuels.
He ordered federal agencies to stop issuing lease contracts and permits for all new wind projects awaiting a new environmental assessment. The interior department then placed a 60-day freezing in authorizing new solar arroys and other renewable energy projects on public land.
In another executive order, Mr Trump defines energy with oil, coal, natural gas, nuclear, geothermal and hydropower – explicitly excluding wind turbines and solar panels. He also told agencies to stop distributing money that the congress had reserved for products such as the installation of fast charging stations along motorways. Legal experts have said that presidents cannot stop the congress with expenditure.
But some green energy investors are already withdrawing. After Mr Trump won the November elections, RWE, a German company, announced that it would lower the expenditure on the development of the American offshore wind, and said that the risks for new projects had increased there.
Within oil and gas, companies are particularly encouraged by Mr. Trump's promise to make it easier to build pipelines, although this is likely to take years because the congress would have to adopt new legislation and opponents will probably try to block projects by them challenging them by challenging them in court.
Nowadays it is especially difficult to build pipelines that exceed state lines. Companies have almost given up when building pipelines on a long -distance in the northeast after previous projects were dealing with considerable lawsuits, as well as opposition to national and local officials.
As a result, companies can only move so much natural gas from Appalachia, one of the most productive gas regions in the country, which limits production in states such as Pennsylvania and prices locally depressing prices. A few hundred kilometers away, in places like Boston, gas is generally much more expensive.
What we will have focused on our sights on very long -term, sustainable permit reform that enables us to have things built here in the US in a responsible manner, “said Alan Armstrong, Chief Executive of Williams, one of the largest Natural gas piping operators of the country.
Brad Plumer contributed reporting.
