Trump hosts top US oil executives as trade wars threaten
Donald Trump, the U.S. president, will be hosting top oil executives in the White House this Wednesday to discuss plans for boosting domestic energy production amid falling crude prices and trade wars. This will be Trump's first meeting with oil and gas executives since he returned to the White House in January for his second term.
According to a source familiar with planning the event, it will include members of American Petroleum Institute (API)'s executive committee. According to public bios, ExxonMobil's CEO Darren Woods is on the executive committee of the trade group, along with Chevron CEO Mike Wirth and ConocoPhillips Chief Executive Ryan Lance. Phillips 66 Chief Executive Mark Lashier, Marathon Petroleum CEO Maryann Manden, and Chevron CEO Mike Wirth. According to the source, there will be a "victory lap", in which Trump is praised for his early support for the industry. However, executives are expected to also express their concerns about Trump's trade policies and stress the need for higher prices of oil to meet the president's pledge to increase domestic production.
Trump and his allies entered office with the promise to increase already record U.S. production of oil by up to 3 million barrels a day, and reduce energy prices for Americans who are suffering from inflation. This was done in part by rollingback environmental regulations and speeding up permitting.
Ed Hirs is an energy economist from the University of Houston. He said that the best way to maintain oil output and energy independence was to support a high oil price. "Drill, baby, drill is not the answer. "I think they will try to make this point tactfully to him."
Wood Mackenzie, an energy analytics company, predicted that benchmark Brent oil would average $73 a barrel in 2025. This is down $7 compared to 2024 because of U.S. tariffs and OPEC+'s plans to increase output.
API spokesperson Bethany Williams, when asked to comment on the event, reiterated that the group was pleased to have the opportunity to discuss the role of the industry in driving economic growth and enhancing national security.
The White House has not responded to a request for comment.
Trump has launched a trade battle with his allies, Mexico and Canada. The API publicly opposes this because these two countries are the top importers of crude oil to the United States. Trump has already imposed tariffs against imported crude oil from Canada and Mexico, but granted exemptions to producers that can prove compliance with the United States-Mexico Canada Agreement.
API CEO Mike Sommers responded to the tariffs last month by saying, "Energy market are highly integrated and free and fair trading across our borders is crucial for delivering reliable, affordable energy to U.S. consumers." consumers."
API has released a public five-point plan that Trump and Congress can follow. This includes a permit reform, increasing offshore oil leasing and protecting tax credits for hydrogen production, carbon capture, and electric vehicle subsidies. (Reporting By Jarrett Renshaw; Editing by Nia Williams)
(source: Reuters)
