Oil industry that Trump wants to ‘drill, baby, drill’ has taken a beating since he took office

Energy prices down after 100 days of Trump, as promised, but could spell trouble for companies

His detractors say Trump favors the interests of corporations over that of citizens. While oil, gas and coal companies now operate under a friendlier regulatory environment, experts warn that economic headwinds may impact the energy producers' bottom line.

Drill, baby, drrill - that was Donald Trump's mantra in the presidential election campaign. The 78-year-old wanted to free the oil and gas industry from the environmental shackles of the Biden government and herald an era of US energy dominance. But the oil companies do not cheer, they suffer.

Trump’s Policies Are Creating Uncertainty for Fossil Fuel Companies

The Trump administration aims to make fossil fuels cheap—so cheap they wouldn’t be worth extracting. “‘Drill, baby, drill’ is nothing short of a myth,” one oil executive has said.

Oil industry that Trump wants to 'drill, baby, drill' has taken a beating since he took office

President Donald Trump wants the oil and gas industry to “drill, baby, drill” in pursuit of his energy dominance agenda, but the companies involved in the actual drilling and servicing of wells have instead taken a beating during his first 100 days in office.

Oil industry that Trump wants to ‘drill, baby, drill’ has taken a beating since he took office

U.S. crude oil prices have fallen more than 20% since Trump took office, to below $65 per barrel, making it unprofitable for many companies to drill.

U.S. Oil Companies Spent Less on Interest Over the Last Decade Despite Higher Rates

Source: EIA | Higher oil prices, increased drilling efficiency, and structurally lower debt needs have contributed to lower interest expenses for some publicly traded U.S. oil companies over the past decade, despite the level of interest rates across the economy being relatively high. Based on the published financial reports of 26 U.S. publicly traded oil companies, interest expenses per barrel of oil equivalent (BOE)—a measure that accounts for…