President Donald Trump often revealed his goal of lowering the price of energy as part of his overall agenda to break the background of chronic inflation left behind by President Biden. When talking about this goal, the President has placed a particular emphasis on lowering the prices of crude oil given the essential relationship between gas prices and transportation-related costs at pumps, which ranges from prices of food, clothing and other consumer goods.
“The very big thing I’m very pleased with is the oil down,” Trump said. I said it in my remarksIn an oval office on Wednesday. “We’re keeping that down. When energy drops, prices are going to fall. So in a very short period of time, we did a very good job.”
White House Advisor Peter Navarro It is quoted By New York Times Other media also say that average oil prices per barrel can tame inflation and help set the stage for a healthier economy. If that’s actually the target, this week’s event confluence will feature an increase in oil production quotas that are greater than expected. OPEC+Oil Cartel Mutual tariffs announced by the president in a wide range of countries were ahead 24 hours ago.
Just before Trump’s tariff announcement on Wednesday afternoon, West Texas intermediate price Crude was $70/bbl. Within less than 48 hours, the price fell below $61, down about 15%. It was the biggest two-day drop in crude oil prices since 2021. In contrast to the OPEC+ agreement, it is difficult to pour 137,000 barrels per day into the international market, but there is no doubt that both actions have had an impact.
As mentioned earlier, this action to force low prices of oil and natural gas is simultaneously a direct conflict with Trump’s “drills, babies, drills,” which he considers as an important part of the American energy domination agenda. The White House nodded to the oil refining segment in Wednesday’s tariff announcement by waiving energy imports. At the very least, another measure aimed at lowering prices of gasoline and diesel fuel.
But that nod to the downstream segment is rare for upstream companies whose supply chain McCup and Biden-era inflation have increased tremendous prices above Friday’s level. Q1 2025 Energy Survey Report The issue was issued by the Dallas Federal Reserve System on March 26, and Permian Basin excavators estimate that a new Shalewells drill would need an oil price of $61 to break. The required break-even price rises higher in other, less prolific basins. cnn quoted in dependent oil analyst Andy Lipou says many upstream companies need prices close to the new Shalewell’s $71/BBL level on Monday. Needless to say, operators will have little incentive for “drills, babes, drills” if they stand to lose money.
In an interview with Fox Business Host Stu Varney Tuesday, “If you have expensive energy in your state, it’s because of the choices that politicians in those states chose to signal virtue. He added that Trump pursues energy policy based on common sense, “common sense brings more investment in our country and lowers energy prices.”
Without a doubt, few industry executives agree that pursuing a $50 oil price has something to do with corporate common sense. If prices lower it and drag it out there for every period, layoffs and idle drilling rigs will become the common topic of oil and gas at the time.
So, while the White House may continue to promote its “drill, baby, drill” slogan for the time being, it will not be heard running through the joints of BBQ and TexMex in Midland, Texas for the time being.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialised in public policy and communication.
The opinions and opinions expressed in this commentary are the views of the authors and do not reflect the official position of the Daily Caller News Foundation.
All content created by the Daily Caller News Foundation is an independent, nonpartisan newswire service that is free to use for legitimate news publishers that can provide large audiences. All republished articles must include logos, reporter signatures and DCNF affiliation. For questions regarding our guidelines or partnerships with us, please contact licensing@dailycallernewsfoundation.org.
