Priyanka Tiwari
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US President Donald Trump will host a key meeting with top oil and gas executives at the White House on Wednesday. This meeting, which marks Trump's first sit-down with industry leaders since returning to office for his second term, comes at a crucial time for the oil sector. The meeting will discuss strategies to boost domestic energy production amid falling crude prices and looming trade wars that are threatening the stability of global oil markets.
The American Petroleum Institute (API) will send members of its executive committee to attend the closed-door meeting, including ExxonMobil CEO Darren Woods, Chevron CEO Mike Wirth, ConocoPhillips CEO Ryan Lance, Phillips 66 CEO Mark Lashier, and Marathon Petroleum CEO Maryann Mannen, among others.
Concerns Over Tariffs and Trade Wars
While the meeting will celebrate Trump's early support for the oil industry, executives are expected to raise concerns about the trade wars and tariff policies. The executives are likely to stress the importance of higher oil prices in meeting Trump's goal of growing domestic production. As part of his earlier promises, Trump vowed to increase US oil production by 3 million barrels per day while also reducing energy costs for consumers.
Ed Hirs, an energy economist at the University of Houston, stated that “the best way to maintain oil production and energy independence is to support a higher oil price.” He emphasized that the industry's focus should not solely be on aggressive drilling but on creating a stable economic environment for oil production.
Impact of Trade Wars on Global Oil Markets
The US oil industry has been affected by the ongoing trade disputes, particularly the tariffs on crude oil imports from Mexico and Canada. The API has opposed these tariffs, citing the importance of free trade between the U.S. and its North American neighbors. Canada and Mexico are key suppliers of crude oil to the U.S., and any disruption in the trade flow could harm the stability of energy markets.
According to Wood Mackenzie, a leading energy analytics firm, Brent crude oil prices are expected to average $73 per barrel in 2025, a $7 decline from 2024 due to US tariff policies and OPEC+ decisions to increase output.
API's Five-Point Energy Plan
In response to the challenges posed by tariffs and trade policies, the API has released a five-point energy plan aimed at boosting energy production and maintaining energy independence. Key points include:
- Permit reform to streamline energy projects.
- Boosting offshore oil leasing to increase oil and gas exploration.
- Protecting tax credits for carbon capture and hydrogen production to encourage sustainable energy practices.
- Rolling back subsidies for electric vehicles to ensure a level playing field for the oil industry.
- Ensuring that trade agreements between the U.S., Mexico, and Canada are respected to avoid disrupting oil imports.
