Shale oil execs say Trump policies are hurting investment, 'business is broken'

Core Insights - Shale oil executives express concerns that U.S. President Donald Trump's policies are negatively impacting investment in the oil industry, leading to a bleak outlook for the sector that has made the U.S. the largest crude producer globally [1][2]. Industry Sentiment - A quarterly survey by the Federal Reserve Bank of Dallas revealed that 139 oil and gas companies, primarily from Texas, northern Louisiana, and southern New Mexico, reported a grim outlook due to Trump's policies [2]. - Nearly 80% of executives indicated they have postponed investment decisions due to increased uncertainty regarding future oil prices and production costs [3]. Economic Impact - Executives warn that the push for lower crude prices and higher tariffs is detrimental, with one stating that "drilling is going to disappear" as the target price for crude oil is set at $40 per barrel, while current prices hover around $65 per barrel [5]. - The shale industry has faced significant challenges, with one executive claiming it has been "gutted" under both the Biden and Trump administrations, attributing the decline to political hostility and economic mismanagement [6]. Regulatory Environment - While U.S. Energy Secretary Chris Wright claims that the administration is making drilling cheaper by reducing regulations, 57% of executives reported that regulatory changes have only minimally decreased their breakeven costs [8]. Future Outlook - Executives caution that Trump's aggressive stance against the renewable energy sector may have long-term repercussions for the oil and gas industry, predicting that investors will shy away from energy due to volatility and the risks associated with sudden policy changes [9]. - There are warnings that the current attacks on renewables could lead to stricter regulations and penalties for traditional energy sources when political power shifts back to Democrats [10].